Anti-Money Laundering & Beneficial Ownership

AML compliance for attorneys. Covers the BSA framework, client due diligence, Corporate Transparency Act beneficial ownership reporting, real estate money laundering, trust and estate AML risks, IOLTA compliance, and building an AML program.

8 Units

20 minutes per unit

Curriculum Map

What You Will Learn

Corporate Transparency Act

Beneficial ownership reporting is here. Understand the 23 exemptions, filing deadlines, penalties, and your role as counsel.

Real Estate & Trusts

All-cash real estate purchases, shell company buyers, offshore trusts, and the money laundering schemes regulators are targeting.

IOLTA Compliance

Trust account recordkeeping, commingling prohibitions, and the SAR reporting considerations unique to attorney trust accounts.

All Units

20 minutes

The AML Framework and the Gatekeeper Rule

Examines the statutory and regulatory architecture of U.S. anti-money laundering law, including the Bank Secrecy Act, FinCEN's evolving authority, and the proposed extension of AML obligations to attorneys.

•Trace the statutory and regulatory foundation of U.S. anti-money laundering requirements from the Bank Secrecy Act to FinCEN's proposed Gatekeeper Rule
•Identify how the Financial Action Task Force (FATF) standards influence domestic AML obligations for designated non-financial businesses and professions
•Assess the practical implications of extending AML compliance obligations to attorneys engaged in covered transactions

Start learning

20 minutes

Client Due Diligence and Know Your Client

Explores the principles and procedures of client due diligence, including risk assessment frameworks, red flag identification, and enhanced due diligence triggers for high-risk clients and transactions.

•Apply the risk-based approach to client due diligence mandated by FinCEN's Customer Due Diligence Rule and FATF Recommendation 10
•Identify red flags that trigger enhanced due diligence requirements under FinCEN guidance and AML best practices
•Implement procedures to verify beneficial ownership and assess client risk profiles consistent with regulatory expectations

Start learning

20 minutes

Beneficial Ownership Reporting and the Corporate Transparency Act

Analyzes the Corporate Transparency Act's beneficial ownership information reporting requirements, including covered entities, exemptions, deadlines, penalties, and the role of attorneys in facilitating client compliance.

•Identify which entities are required to file beneficial ownership information reports with FinCEN under the Corporate Transparency Act
•Apply the statutory exemptions to determine which clients are excluded from BOI reporting obligations
•Calculate reporting deadlines for existing entities, newly formed entities, and updated reports when beneficial ownership changes

Start learning

20 minutes

Suspicious Activity Recognition and Money Laundering Typologies

Examines the techniques and patterns used in money laundering schemes, including case studies of structuring, shell company abuse, trade-based laundering, and PEP-related corruption.

•Identify common money laundering typologies including structuring, layering, trade-based money laundering, and the use of shell companies
•Recognize the indicators that distinguish politically exposed persons (PEPs) and assess the heightened risks they present
•Apply the three-stage money laundering model (placement, layering, integration) to analyze transaction patterns for suspicious activity

Start learning

20 minutes

Real Estate Transactions and Money Laundering

Examines money laundering in real estate transactions, focusing on all-cash purchases, shell company buyers, FinCEN Geographic Targeting Orders, and case studies from high-risk markets.

•Analyze how all-cash real estate purchases and shell company buyers facilitate money laundering under FinCEN Geographic Targeting Orders
•Identify the red flags specific to real estate transactions that indicate potential money laundering, including pricing anomalies and beneficial ownership concealment
•Apply case study lessons from Miami and New York City real estate schemes to assess client transactions for illicit finance risks

Start learning

20 minutes

Trust and Estate Planning AML Risks

Explores the intersection of trust and estate planning with money laundering, including offshore trusts, beneficial ownership concealment, PEP estate planning, and attorney obligations when representing high-risk clients.

•Identify how offshore trusts and complex estate structures can be exploited to conceal beneficial ownership and launder illicit funds
•Apply enhanced due diligence standards to trust and estate clients who are politically exposed persons or operate in high-risk jurisdictions
•Assess the money laundering vulnerabilities created by discretionary trusts, trust protectors, and private trust companies

Start learning

20 minutes

Attorney Trust Accounts and IOLTA Compliance

Analyzes attorney trust account obligations, including IOLTA compliance, recordkeeping requirements, commingling prohibitions, and the intersection of trust account management with AML concerns.

•Apply the recordkeeping and segregation requirements for attorney trust accounts under Model Rule 1.15 and state-specific IOLTA regulations
•Identify commingling and misappropriation violations that constitute professional misconduct and potential criminal liability
•Assess when attorney trust account activity may trigger Suspicious Activity Report filing obligations for the underlying financial institution

Start learning

20 minutes

AML Compliance Programs for Law Firms

Provides a practical framework for implementing AML compliance programs in law firms, including risk assessment, policies and procedures, training, independent testing, and governance structures.

•Design a risk-based AML compliance framework for law firms that includes risk assessment, policies and procedures, training, and independent testing
•Implement client intake and due diligence systems that identify and mitigate money laundering risks before accepting high-risk engagements
•Establish escalation and reporting protocols for suspicious activity that comply with professional conduct obligations while preparing for potential regulatory requirements

Start learning