Anti-money laundering system

Chief_of_Staffy

EssexHebridean said:

Chief_of_Staffy said:

EssexHebridean said:

Sounds like your solicitor was just trying it on in that case Chief of Staffy - however, increasingly as I mentioned previously Indemnity Insurers are demanding that third party providers are used for AML checks, and had this been the case with the firm you instructed, they wouldn’t have been able to continue to act for you without the process being followed. It’s not really very helpful or accurate to give the impression that your experience is likely to be typical.

They weren't trying it on in that sense; they used by default an app by a third party provider, and sent me the provider's PDF instructions up-front. They would have preferred me to use the app, but had no issue when I refused, because, as they are legal professionals, they are perfectly capable of validating my funds.

I did some brief research and found not a single instance of indemnity insurers 'demanding' that solicitors use apps for all AML checks. All I found were references to 'encouragement' and 'preferred protocol', sometimes resulting in preferable terms.

And for certain, if people didn't repeatedly hand over the entirety of their most private data when there is no need whatsoever to do so, there would be no third party apps in the first place.

The insurers for the firm I work for DO insist on it - so it's definitely out there as a thing. 

That must make for a tough pitch. "We don't trust you to do basic funding checks and insist you tell your clients to use a third-party app, but that aside, please choose us."

EssexHebridean

Not really - because by lowering their exposure to risk in that way across their insured firms, they can then offer what is an eye wateringly expensive product at a slightly cheaper rate.  Think of it a bit like black-box car insurers - people can frequently get their insurance at a lower rate because it is well known that just by being there, that box makes them less of a risk on the roads - in most cases it’s not that the insurers are suggesting they don’t trust them.  Simply because PII is so expensive  - and getting more so every year - anything that can be done to bring the cost down here and there has to be.