Jonathan Versluys on AML: awareness, supervision and automation
Summary
Every day, our specialists are busy identifying (potential) clients and maintaining existing contacts. Among other things, contact is made, situation sketches are made and tangents are discussed. In this process, clients are encouraged to think about their preparation for a supervisory visit. In this blog, we meet with our multilingual specialist Jonathan. He talks more about his role as a consultant for Belgium, France and Luxembourg in this blog.
"My role within RegLab, mainly consists of having and maintaining contact with the heads of law firms in Belgium, Luxembourg and France. On a daily basis, I am busy creating awareness for money laundering prevention in the BeNeLux and France" - Jonathan
Greater awareness of AML guidelines is needed
Jonathan indicates that his main task is to increase knowledge of anti-money laundering legislation among gatekeepers such as the legal profession. By linking this knowledge to the role of the supervisory authority, clients gain a better understanding of how to apply the law correctly. Lawyers need to know what money laundering prevention entails and how to deal with it within their firm. As an expert, Jonathan closely follows developments in supervision and legislation, so that the firms he speaks to are well prepared for what is to come.
He is primarily involved in assisting clients with compliance with anti-money laundering legislation using the RegLab application and preparing them for supervision in practical terms. Clear information, smart automation and up-to-date knowledge help firms to operate in an AML-compliant manner. Without any extra admin hassle, an automated approach makes sure files are sorted quickly and correctly. That saves time, reduces risks, and gives the firm peace of mind. "It's important for our clients to know in advance how to use the RegLab app as efficiently as possible and how we support them with changes in AML regulations," says Jonathan.
Making it easier to be AML-compliant
"As a firm, you always have to be just that little bit better, faster, more effective, or perhaps even a little more modern than the competition. The most important thing is to offer excellent service." Jonathan emphasises that when you need a lawyer, it is customary to go to someone you can trust. Someone who can help you with legal conflicts and someone who can take your problems off your hands. After all, you pay a lot of money for a lawyer. Requesting additional forms, which are necessary for the client onboarding process, is something that firms want to minimise. With a user-friendly interface that guides clients through the KYC process, it is easier for solicitors to work in an AML-compliant manner.
‘Many lawyers give clients extra work by asking them to fill in various forms. It's a necessary evil, but there is another way. RegLab supports firms in achieving a smooth onboarding process’ - Jonathan Versluys
The RegLab application replaces separate Excel files and fragmented CRM systems with a single central overview of the client database. At a glance, you can see which matters require attention and where the risks lie. When the regulator carries out an inspection, all relevant information is immediately available. For example, if the regulator asks a question about the percentage of high-risk clients, you can generate an up-to-date overview with a single click that provides an immediate answer. In this way, RegLab combines efficient working with demonstrable compliance with anti-money laundering legislation.
Questions answered by our Belgian specialist
Are there certain issues or obstacles that recur structurally in your conversations with clients?
"Clients sometimes have questions about the onboarding process, client verification or the UBO register. In such cases, we listen to the client and go through any issues. The biggest obstacle we encounter with firms is that they do not have their AML compliance in place on time. It is not that legislation is not clear, but rather a lack of urgency or the right resources. Firms do not always see the benefits of having well-documented records, especially if it is not (yet) mandatory. In that case, documentation is more of a nice-to-have than a must-have."
How are clients in Belgium, France and Luxembourg reacting to the RegLab application, especially with regard to AML compliance?
"What everyone agrees on is that the RegLab application is a great solution for quick and smooth onboarding. The look and feel of the tool is something offices have been looking for for a long time. It looks professional and is easy to use. Of course, the tool is also built specifically for lawyers. Generally, lawyers have to make do with a solution made for others, which will then hopefully apply to lawyers. A tool developed specifically for lawyers is a one-off."
How do AML guidelines differ in Belgium, France and Luxembourg. And what do they mainly focus on?
"The AML guidelines are the same for the aforementioned three countries. This is because the countries fall under European legislation. I do notice that most countries look at the AML directives with a different perspective. Offices in Luxembourg mainly focus their time on questionnaires imposed on law firms by the Luxembourg Bar Association. In addition, these firms also focus on identifying adverse media. Luxembourg is a lot more consistent in this as they have been working on the obligations around AML for a long time.
France, on the other hand, focuses more on the client. There, they understand the regulations applicable to money laundering prevention well and are shifting the focus to a more client-centric approach. French firms like to focus on getting to know clients and are busy requesting information in a client-friendly way. A good relationship with a client will be accompanied by a polite but not direct way of working.
In Belgium, firms take a more theoretical approach in applying the AML guidelines. The Order of the Flemish Bars (OVB) has developed an informative expression that is also used by firms. In Belgium, communication between lawyer and client will be more in a formal and businesslike tone. When someone needs legal assistance, it is a must to use a competent lawyer."
Should a KYC investigation be conducted at all times?
"Basically, you have to identify every client in a critical way. Regardless of the type of client or the relationship you have with the client. When we are asked by firms whether a KYC review should always be conducted, I routinely turn the question around with an example:
Imagine this: an old acquaintance of a client wants to hire you as a lawyer. You know the person via via, but are not aware of the name of his limited company. Still, you consider taking the case. You request all name and contact details and receive the name of his private limited company. To your surprise, it turns out to be called ‘Money Laundering in Antwerp BV’, also known as ‘GW in Antwerp’.
Would you then conduct a KYC investigation on this client?"
About Jonathan Versluys
Jonathan is RegLab's multilingual specialist for Belgium, Luxembourg and France. Based in Belgium, he is at the heart of his clients' needs and questions. His cheerful and outgoing nature makes him a strategic match for both existing and new clients. He is an important part of our international collaborations!