From digital client verification to better record-keeping, technology can help law firms strengthen their anti-money laundering procedures while supporting more efficient working practices.
Anti-money laundering (AML) compliance is an established responsibility for law firms undertaking work within the scope of the Money Laundering Regulations 2017. From verifying client identities to understanding the source of funds, firms must have appropriate procedures to identify and manage financial crime risks.
Technology is increasingly playing a role in supporting these responsibilities.
In October 2026, the Solicitors Regulation Authority (SRA) highlighted discussions about the use of technology and artificial intelligence to support the faster identification of AML risks. This followed the publication of its updated sectoral risk assessment in September, which addressed emerging risks associated with digital technology and client onboarding.
For law firms, the opportunity is not simply to introduce more software. It is to understand how existing and emerging technologies can support effective AML procedures, improve consistency and make relevant information easier to manage.
Digital Client Identity Verification
Client identification and verification are important elements of customer due diligence.
Digital identity verification services can help firms establish and verify a client’s identity, particularly where clients cannot attend the office in person.
Depending on the service used, this may include electronic identity checks, document authentication and biometric verification.
However, firms should understand how their chosen provider operates, the level of assurance it offers and whether it is appropriate for the risks associated with the client or matter.
HM Treasury’s February 2026 guidance also clarifies the requirements relating to certified digital verification services used for identity checks under the Money Laundering Regulations.
Digital verification can support the process, but it does not remove the firm’s responsibility to undertake appropriate due diligence.
Supporting Source of Funds and Risk Assessments
Understanding the source of funds, and where appropriate the source of wealth, is particularly important in transactions involving substantial sums of money.
Technology can help solicitors organise supporting documents, record enquiries and maintain a clearer picture of the information obtained during a matter.
Digital workflows can also help ensure that relevant checks are completed, reviewed and recorded consistently.
For example, a conveyancing department may use its case management system to track outstanding due diligence information and record when a matter requires further review.
Importantly, software should support professional judgement rather than replace it. The nature and extent of enquiries must remain appropriate to the risks identified.
Maintaining Clear Records and Audit Trails
Effective AML procedures depend on accurate and accessible records.
Document management and case management systems can help firms maintain records of client identification, risk assessments, supporting evidence and decisions made during a matter.
Features such as controlled access, version histories and activity logs can also support accountability and internal oversight.
A consistent approach to electronic record-keeping may make it easier for compliance teams to review files, identify missing information and demonstrate the steps taken to meet relevant obligations.
Firms should also ensure that their retention arrangements comply with applicable legal and data protection requirements.
Using Technology for Ongoing Monitoring
AML compliance is not necessarily completed when a client is first onboarded.
Depending on the nature of the business relationship and the applicable requirements, firms may need to keep due diligence information under review and respond to changes in circumstances or emerging risks.
Technology can assist by providing reminders, tracking review dates and highlighting incomplete information.
Some specialist systems may also support sanctions screening, politically exposed person checks and other risk-related monitoring.
However, automated results need to be interpreted appropriately, and firms should understand the limitations of any screening tools they use.
Choosing Technology That Supports Your Firm
Not every law firm requires the same AML technology.
The appropriate approach will depend on factors including the firm’s practice areas, client profile, transaction types, existing systems and risk exposure.
Before introducing a new solution, firms should consider whether it integrates with their existing case management processes, how securely information is stored, who can access it and what training staff will need.
The SRA’s guidance on technology for due diligence emphasises the importance of understanding what a system does and whether it provides an appropriate level of assurance.
A well-chosen solution should support the firm’s procedures without creating unnecessary complexity.
Technology Supports Compliance. People Remain Responsible.
Technology can help law firms work more consistently, manage information effectively and identify matters requiring additional attention.
But it cannot replace professional judgement, appropriate supervision or a clear understanding of regulatory obligations.
The most effective approach combines suitable technology with well-established procedures, informed staff and regular oversight.
For law firms reviewing their AML arrangements, the starting point should be understanding their existing processes and identifying where technology can provide meaningful support.
At OneTechUK, we support law firms with the secure IT infrastructure, systems and technical expertise that underpin their day-to-day operations. From Microsoft 365 and document management to access controls and secure cloud environments, the right technology foundations can help firms maintain effective and reliable working practices.
