Six ways law firms can improve AML training

Anti-money laundering (AML) training is a critical component of law firm compliance, yet many firms struggle to implement effective training programs. Below, we explore six practical strategies firms can implement to enhance AML training and ensure better compliance outcomes.

Are firms required to undertake AML training?

In short - yes. AML training is essential to protect law firms and their staff from inadvertently facilitating money laundering. Legal services must remain vigilant against financial crime, as law firms handle large monetary transactions and provide services that could mask illicit activities—making them prime targets for money launderers. Staff awareness is a crucial control for AML, as staff members are the first line of defence against money laundering. To strengthen this defence, firms must empower their staff with the knowledge and skills needed to identify money laundering.

Notwithstanding the requirement that under the Money-laundering Regulations, firms must ensure all relevant staff receive regular AML training under regulation 24.

Over the years, regulators have increased their assessment of AML training. For example, when preparing for an onsite inspection, firms must now provide copies of their training materials for quality evaluation.

AML training in the legal sector

In October 2024, the SRA shared the findings of their Anti-Money Laundering Training – Thematic Review. The review outlined what makes an effective training program, using the acronym ROLE to describe key areas for creating engaging training.

R - relatable

O - ongoing

L - leadership

E - engaging

The SRA's ROLE framework provides a structured approach to delivering effective AML training that resonates with staff. Let's explore some practical considerations that can contribute to creating a robust training program that meets regulatory requirements while driving meaningful engagement.

1. Make Training Interactive and Relevant

Let’s face it—nobody looks forward to another PowerPoint marathon or sifting through long manuals. To keep your team engaged and make AML training stick, switch things up with more dynamic formats:

• Case study workshops based on real-world scenarios

• Role-playing exercises for client interactions

• AML Spotlight in team meetings

• Interactive digital modules with practical examples

• Quick, short quizzes to keep everyone on their toes

The possibilities for engaging training are endless - let' ditch the boring methods (that no one likes anyway) and get creative with training that is memorable, interactive and actually makes an impact,

2. Implement Regular Updates

The SRA has reported that “Firms were more likely to be deemed compliant where recent (within the last year) AML training had been provided”. AML regulations and threatsevolve constantly, so keeping your team-up-to-date is crucial. Here are ways your firm can stay ahead:

• Establish a structured schedule of training sessions throughout the year to maintain consistent awareness of AML requirements

• Create a system for communicating, and sharing relevant updates on trends, industry guidance, and legislative changes

• Maintain an up-to-date resource library

3. Tailor Training to Different Roles

A one-size-fits-all approach simply doesn't work when it comes to AML training. To be effective, consider tailoring your training to the specific needs of each role within your firm such as:

• Partner-level strategic training

• Practice area-specific modules

• Support staff compliance basics

• MLRO specialised training

The SRA reported that “Where money laundering compliance officers (MLCOs) had undertaken additional training, firms were around 50 per cent more likely to be compliant  compared with firms where the MLCO had not undertaken any additional training.”

5. Measure and Monitor Effectiveness

The SRA has reported that firms that provide effective training content are far more likely to pass an AML inspection. To ensure your training is making an impact, you can measure effectiveness through:

• Formal and informal regular evaluation of staff knowledge and understanding

• Tracking training completion rates and assessment outcomes

• Collecting participant feedback

• Monitoring compliance-related incidents

• File reviews and non-compliance findings (and understanding how these feed back into the compliance training program)

6. Create a Compliance Culture

A firm's compliance culture begins with senior management's commitment. When leadership actively supports compliance initiatives, it positively influences fee earners' attitudes toward both training and AML compliance. Training should be part of a broader compliance culture:

• Regular compliance updates in team meetings

• Clear escalation procedures

• Recognition for good compliance practices

• Open dialogue about AML challenges

Are you, or the leadership in your firm actively tracking AML training records and completion rates? When staff repeatedly miss training or dismiss its importance, this undermines both the training's value and the compliance culture.

Leaders must take an active role in ensuring training is completed. Setting up things such as automated reminders, tracking systems or clear consequences for non-completion.Regular reports to the board or management committee on training compliance rates reinforces the firm's commitment to AML compliance and hold everyone accountable.

Best Practices Implementation

To successfully implement these improvements:

• Conduct a training needs assessment

• Develop a training calendar

• Allocate adequate resources and budget

• Consider non standard opportunities that can be used for ongoing training and awareness such as attending reliable AML webinars, conferences, subscribing to dedicated AML updates to keep on top of developments.

• Using diverse media formats—including videos, audio recordings, and text—helps keep training engaging while supporting different learning styles and preferences.

• Regularly review, assess and update training where needed

• Document and record all training activities including:

  • Training content

  • AML updates that have been shared

  • Attendance records

  • Dates of training

  • The results of any assessments carried out

  • File reviews results

Conclusion

Effective AML training is not just about meeting regulatory requirements – it's about protecting your firm and clients. By implementing these improvements, law firms can create more engaging, effective, and sustainable AML training programs that lead to better compliance outcomes.