I’ve recently been speaking to a lot of junior legal professionals and graduates looking to make a move into a compliance role. There’s been a lot of regulatory changes over the last 18 months with the SRA and as such a career in compliance is more attractive than ever. With clear progression opportunities and salaries that can compete with those of a solicitor. 

So, if you’re thinking of a career in compliance. Here’s what you can expect from your first role.

Client Due Diligence (CDD)

• Identification & Verification: The first step is to confirm that the client is who they say they are. This involves collecting identification (ID) documents and verifying the client’s identity, a process known as KYC (Know Your Client). If you’re working with a business, you’ll need to verify the entity’s information, such as the registration number, address, and the identities of directors and shareholders. Example: For instance, when onboarding a new corporate client, a Compliance Analyst might use third-party databases to cross-reference the information provided by the client with public records, ensuring that all details match up. This process helps prevent fraud and ensures compliance with legal obligations.
• Risk Assessment: The next step is to evaluate any potential risks the client might pose to the firm. This includes considering factors like their geographic location, the type of business they operate (especially if it’s high-risk), and whether they have any political exposure (e.g., PEPs, or Politically Exposed Persons).
• Clarifying Purpose: It’s essential to understand the purpose of the client’s interaction with the firm. What services are they seeking, and what activities are involved? This helps ensure that the relationship aligns with the firm’s risk appetite and legal obligations. Example: If a client seeks to establish a trust, the Compliance Analyst must ensure that the client’s intentions are legitimate and that the trust’s structure complies with both local and international regulations.

Regulatory Compliance

• Adhering to Legal Standards: A key part of the role is ensuring that the firm complies with relevant laws and regulations, including SRA standards, AML (Anti-Money Laundering), and CTF (Counter-Terrorism Financing) requirements.
• Supporting Internal Audits and Reviews: You’ll assist senior compliance managers with internal audits and reviews. This typically includes file audits, where you review past documents to ensure that all recorded details are accurate, up-to-date, and in line with the firm’s policies and procedures. Example: During an audit, the Compliance Analyst might uncover discrepancies in a client’s file, such as missing identification documents or outdated risk assessments. Addressing these issues promptly is crucial to maintaining the firm’s compliance with legal standards.

Monitoring and Reporting

• Ongoing Client Monitoring: Compliance doesn’t stop after the initial due diligence. You need to continually monitor clients’ activities to ensure they remain consistent with the firm’s policies and procedures. This includes reassessing their risk level as necessary. Example: If a client’s risk profile changes—say, they expand their business into a new, high-risk market—the Compliance Analyst must reassess the risks and adjust the firm’s approach accordingly.
• Suspicious Activity Reporting (SARs): If you notice any behavior or transactions that appear suspicious or inconsistent with the firm’s best practices, it’s your responsibility to report these through the proper channels, typically by filing a SAR.

Policy Development and Implementation

• Staying Updated on Regulatory Changes: Part of your role involves keeping up-to-date with regulatory changes across the jurisdictions you’re responsible for. For example, if the SRA releases new AML guidelines, you’ll need to help develop and refine the firm’s policies and procedures accordingly. Example: After updating AML policies, the Compliance Analyst might organize training sessions to educate the firm’s partners and fee earners about the changes and how they impact daily operations.

Training and Awareness

• Educating the Firm: It’s great that you’re aware of all the regulatory updates, but it’s just as important that everyone else in the firm is too. You’ll be responsible for educating and delivering training to partners and fee earners on areas where they could improve or on new regulatory updates.

The Compliance Analyst role in every law firm is unique. In larger firms the areas above are typically divided between specialist teams, some dealing with policies and implementation, some dealing with Client Due Diligence and AML. While in a smaller firm, you will be more likely to handle all aspects of the role outlined above.

Regardless of the firms size, it’s a crucial role in safeguarding the firm’s integrity and ensuring they operate in line with the SRA guidelines and the law.

For anyone looking to make a move into compliance, you need to be able to think critically, bring strong attention to detail and be confident in your ability to convey complex compliance matters. If you’re looking to explore opportunities or learn more, please reach out to Lauren.Eager@QEDLegal.com.