AML legislation applies to work classified as a captured activity. If the client activity is not classified as a captured activity, the firm may opt not to complete DD. In such cases, the EXEMPT status can be selected in LegalOffice, with relevant explanations documented to support the decision.
The process involves setting the client matter risk assessment level to EXEMPT and obtaining approval from the firm’s Compliance Officer.
Exempting a Client from Due Diligence using Client Maintenance
Open the client record in the Client Maintenance app.
From the dropdown menu in the CRA field, set the client risk level to EXEMPT. Then, in the DD field, use the dropdown menu to set the due diligence level to None.
Remember to click the Save button before exiting Client Maintenance to save and create the Client Risk Assessment record.
The client will then be available in the AML Manager program, ready for Compliance Officer approval.