Sanctions and source of funds - the essentials (15 May 2025, Online) | Event

Breaches of economic crime legislation, such as the money laundering regulations and the Proceeds of Crime Act, can amount to a criminal offence or can result in the imposition of severe regulatory fines. One key aspect underpinning many different areas of economic crime is the need to understand and, where required or appropriate, to verify source of funds. This is crucial for preventing money laundering and ensuring that the money involved in transactions is legitimate.

The complexity of economic crime laws and frequent changes in law, guidance, and in the techniques deployed by criminal groups, means that there is a need for constant vigilance. One area where there has been a significant change in the expectations of legal professionals is in relation to economic sanctions - following the increased regulation and regulatory focus consequent on Russia’s invasion of Ukraine.

Another area of long-running focus is the verification of source of funds. This remains a particular challenge, as it requires continuous diligence and the exercise of judgment to identify and assess red flags, against a context of changing regulatory expectations. There is also a cross-over between the two topics, as the steps taken to understand source of funds in the context of managing sanctions risk are not identical to the steps required by the money laundering regulations, and legal professionals will need to consider what compliance checks, including on source of funds, are appropriate to manage their sanctions risk.

(Please note, this online event is not intended as a detailed description of particular sanctions regimes (e.g. the UK sanctions on Russia) but instead focusses on general principles of sanctions compliance which are relevant to different sanctions regulations.)

Learning objectives

SRA Competencies A2

Develop your knowledge of how your firm must adhere to current economic sanctions laws and regulations.
Gain practical tips that can help mitigate risk around economic sanctions and source of funds
Understand what the common errors and breaches are in this area
Increase awareness around the significant legal penalties that may be imposed on firms who are not compliant in this area
Learn about best practices around source of funds verification

Who should attend?

Primary audience- money laundering reporting officers (MLROs) and money laundering compliance officers (MLCOs), leaders in law firms, compliance officers for legal practice (COLPs), practice managers, partners, directors of risk.
Secondary audience- other senior leaders in law firms, compliance officers for finance and administration (COFAs).