Money Laundering and Terrorist Financing

***WARNING*** Practitioners should read the Money Laundering, Terrorist Financing and Proceeds of Crime guidance in conjunction with R (on the application of World Uyghur Congress) v National Crime Agency [2024] EWCA Civ 715 in which the Court of Appeal held that the “adequate consideration” exemption in s 329(2)(c) has no application to the offences in section 327 or section 328 of the Proceeds of Crime Act (‘POCA/the Act’). The guidance is in the process of being amended to reflect this judgment.

For further guidance on this case please see here:

Note on R (on the application of World Uyghur Congress) v National Crime Agency

LSAG AML Guidance for the Legal Sector, Part 2a Specific Guidance for Barristers and Advocates (amended)

This guidance assists barristers in determining and navigating their obligations under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended) and related legislation. Please note the majority of this guidance has been approved by HM Treasury, however the changes shown in track are awaiting HMT approval. You are not required to follow this guidance but doing so will make it easier to account to regulators and others for your actions.

The Important Notice at the end of this page relates to this document.

Addendum of amendments to the Part 2a LSAG Guidance in light of R (on the application of World Uyghur Congress) v National Crime Agency

This document is an addendum with amendments to the LSAG AML Guidance for the Legal Sector, Part 2a Specific Guidance for Barristers and Advocates. It is provided as an update prepared by the Bar Council of England and Wales. The update reflects changes to the guidance in light of the Court of Appeal’s decision in R (on the application of World Uyghur Congress) v National Crime Agency [2024] EWCA Civ 715.

Legal Sector Anti-Money Laundering Guidance

The Legal Sector Affinity Group (LSAG) comprises all the legal sector supervisors and representative bodies for anti-money laundering/counter-terrorist financing in the UK. The General Council of the Bar of England and Wales is the supervisory authority for anti-money laundering/counter-terrorist financing for its members under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017  (as amended). In practice this supervision is delegated to the Bar Standards Board.

With the advent of the 2017 Regulations, HM Treasury asked the LSAG to draft a single piece of guidance for their approval, to be applicable to the whole legal sector in the UK. The Legal Sector Anti-Money Laundering Guidance takes account of the changes introduced by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 which came into force on 26 June 2017. In response to the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 and the UK’s withdrawal from the EU, the Guidance has been updated. The Bar Council’s AML Guidance is also published as Part 2a of the Legal Sector Affinity Group’s Legal Sector Guidance. It should therefore be read in conjunction with that sector-based guidance.

Part 2b of the LSAG Legal Sector Guidance contains specific guidance for Trust or Company Service Providers and can be found in a separate document below.

This Guidance has been approved by HM Treasury, as well as Part 2a and Part 2b

The Legal Sector Affinity Group (LSAG) have produced an addendum with amendments to the Part 1 AML guidance which is supplementary to the main guidance. The addendum is provided as an update and to illustrate how LSAG’s attitude towards regulation is developing over time. Please note the changes set out in the addendum are currently pending approval by HM Treasury and, if accepted, will be integrated into the text of the main guidance.

Advisory Note for the Legal Sector on   Remote working, client interaction and AML technology and Impacts of economic instability

Following the shift to remote working as a result of the COVID-19 pandemic, particular issues and risks arise for anti-money laundering/counter-terrorist financing, which this note seeks to address.

This note also addresses how economic instability can change the risks faced by the legal practitioners and how it may increase risk appetite, the risk of money laundering or lead to a reduction of requisite controls.

This note has been drafted in collaboration with the Legal Sector Affinity Group, comprising all UK legal sector supervisors for AML. It has not been approved by HM Treasury.

Advisory Notice on Chinese underground banking and funds from China

This guidance explores the key risks arising from the legal and illegal use of informal value transfer systems (IVTS) which do not use the normal banking system and/or have not complied with national currency controls. The guidance focuses on IVTS in the Chinese context, along with the circumvention of Chinese foreign currency controls. It also provides practical measures to help you mitigate these risks.

Download: LSAG AML Guidance for the Legal Sector, Part 2a Specific Guidance for Barristers and Advocates (amended):

Download: Addendum of amendments to the Part 2a LSAG Guidance in light of R (on the application of World Uyghur Congress) v National Crime Agency:

Download: LSAG AML Guidance for the Legal Sector, Part 1:

Download: Addendum of amendments to the LSAG AML Guidance for the Legal Sector, Part 1:

Download: Trust or Company Service Providers Guidance:

Download: Advisory Note for the Legal Sector on Remote working, client interaction and AML technology and Impacts of economic instability:

Download: LSAG Advisory Notice on Chinese underground banking and funds from China: