AML software for law firms: what it is, why it matters, and how to choose the right platform

Law firms move large amounts of money and handle sensitive cross border transactions every day. That makes the legal sector a target for criminals who want to clean or hide illicit funds.

Whether you call it KYC and KYB software for law firms, AML software for lawyers, or client due diligence software for legal practices, the need is the same. Firms need a reliable way to verify clients, understand risk, monitor changes, and keep regulators confident.

Bruno Edenogie, Head of EU Compliance and Data Protection Officer at Orrick, explains it clearly in our episode of The Laundry podcast:

“If you get things wrong, the problems are significant. For the firm, for you personally, and for the profession as a whole.”

This guide breaks down what KYC/KYB and AML tools do in a legal environment, why they matter now more than ever, and how to select software that fits the way legal teams work.

What KYC/KYB and AML mean inside a law firm

Regardless of size or practice area, every legal practice needs a structured way to confirm:

• who the client is
• who owns or controls them
• where the money is coming from
• what risks the matter introduces
• how those risks change over time

Those are the core jobs that KYC/KYB software for lawyers and AML compliance platforms for law firms aim to support.

Bruno frames the legal obligation like this:

“Lawyers must ensure their services are not misused. They need to know their clients, understand the red flags, and stay aware of changes that present risk.”

A breakdown of the main components follows.

1. Client due diligence (CDD)

Any KYC/KYB tool for law firms should help you:

• verify individuals
• verify companies across multiple jurisdictions
• identify beneficial owners
• understand the purpose of the engagement

Global firms feel the friction most. Some registries are structured and open. Others force you into manual checks. A good legal onboarding tool absorbs those differences.

2. Risk assessment for clients and matters

Law firms assess risk at both the client level and the matter level. That requires an AML system that handles variables such as:

• matter type
• transaction size
• jurisdiction
• use of client accounts
• ownership complexity

This is the only way to avoid treating low-risk advisory work the same as high-risk cross border transactions.

Bruno explains why the risk step is essential for any legal team under pressure:

“A risk assessment helps you tailor your efforts. High risk clients get more due diligence, low risk ones a bit less.”

A structured approach protects the firm and keeps the workload manageable for fee earners and compliance teams.

3. Source of funds checks

Source of funds is one of the hardest parts of legal due diligence. It shows up most often in:

• real estate
• private wealth
• corporate transactions
• matters involving client accounts

These checks create friction because lawyers need clear evidence, clients often send partial information, and every gap triggers another round of emails.

A well-designed AML system for law firms helps by:

• guiding fee earners through consistent questions
• collecting documents in a structured way
• linking evidence directly to the matter
• providing a clean audit trail for later review

Bruno points out that this is where many issues appear in real life:

“Where the risk has come up the most has been in conveyancing transactions. In particular the source of funds.”

Because of this, firms look closely at how a platform handles source-of-funds workflows, overseas documents, and entity structures that do not fit neatly into a single registry.

4. Ongoing monitoring and alerts

This is where modern systems outperform spreadsheets.

Clients change. UBOs change. Addresses shift. People become sanctioned.

During the Russia sanctions wave, firms using manual lists struggled. Bruno notes:

“It highlighted how important good quality data and records are. You need information that is current so you can see your exposure quickly.”

Continuous monitoring is now expected by supervisors.

5. Audit trail and reporting

A complete AML compliance system for legal practices stores:

• checks
• approvals
• escalations
• risk decisions
• documents
• SAR history

This makes supervisor visits easier and helps build internal awareness.

Why KYC/KYB and AML software matter more than ever in legal work

Regulators see law firms as gatekeepers

UK and EU regulators expect serious oversight. Supervisors are increasing inspections and expect firms to show a risk-based approach.

Legal workflows are high-risk

Lawyers touch transactions, structures, client accounts, and jurisdictions often linked to laundering activity.

M&A, property, private client, and corporate formation matters are the classic routes.

Legacy processes slow firms down

Email chains, PDFs, and spreadsheets cause three predictable problems:

• checks get missed
• audit trails fall apart
• multiple teams redo the same work

This is why demand for law firm KYC/KYB automation has grown so fast.

Reputation risk is severe

Bruno explains why compliance failures hit harder in the legal sector:

“When you see those failures, it affects the entire industry, not only the firm involved.”

One sanctions scandal or onboarding mistake can damage trust for years.

What modern KYC/KYB and AML tools for law firms actually do

Here is what strong AML and KYC/KYB platforms for lawyers provide.

Identity and business verification

A good system supports:

• electronic ID verification
• global company lookups
• automated beneficial ownership mapping
• support for trusts and layered structures

This is the backbone of AML software for law firms.

Screening (sanctions, PEPs, adverse media)

Screening must match your footprint.

If your firm works in high-risk geographies, you need data that aligns with that. AML screening tools for lawyers should allow you to tune sources and rules.

Matter-based risk scoring

Matter context changes everything. A low risk client can still present a high risk deal.

This is why legal teams need matter-level software, not generic banking tools.

Structured source-of-funds workflows

Clear, repeatable workflows that:

• capture client answers
• link documents to the matter
• flag inconsistencies
• store evidence for later review

This reduces friction for fee earners and protects the firm.

Continuous monitoring

Modern KYC/KYB monitoring software for law practices triggers alerts when:

• a client becomes sanctioned
• a UBO changes
• a director changes
• adverse media appears
• key risk factors shift

It replaces reactive manual searching with proactive oversight.

Audit trail and case management

Everything is stored:

• what you checked
• who approved it
• what changed
• why you accepted or declined

This is now a baseline expectation for AML case management systems in legal environments.

How to choose KYC or AML software for a law firm

1. It must fit legal workflows

You need:

• matter-based structure
• multiple fee earners on a file
• simple compliance escalation
• partner visibility

If the tool feels like a banking platform, lawyers will push it away.

2. Strong ownership and entity handling

Look for:

• global data coverage
• automated UBO discovery
• support for trusts, nominees, layered groups

This is where many generic tools break down.

3. Coverage where you operate

Check real depth in your jurisdictions:

• registry integrations
• refresh frequency
• sanctions and media relevance
• evidence storage for your bar rules

4. Explainable risk scoring

You need risk logic that:

• you can configure
• you can justify
• is consistent across offices

Black box scoring is a liability.

5. Monitoring that reduces noise

Alerts need to be:

• accurate
• contextual
• matter-linked
• routed to the right owner

6. Easy evidence capture

Smooth adoption depends on:

• simple client questionnaires
• drag-and-drop uploads
• automatic document tagging
• less reliance on email

7. Privacy and integrations

KYC/KYB tools for law firms must meet strict confidentiality expectations:

• GDPR alignment
• data residency clarity
• SSO
• integration with PMS and DMS

8. Helps reinforce a culture of compliance

Bruno explains the mindset behind this:

“Developing a culture of compliance is so important. If it becomes a tick box exercise you miss issues and expose the firm to risk.”

Vendors who understand legal culture add real value here.

What modern solutions do differently

The best KYC/KYB and AML software for legal practices now:

• enriches client data automatically
• maps complex ownership cleanly
• runs continuous checks
• produces audit-ready risk assessments
• reduces manual repeat work across matters

Bruno describes the target:

“My Zenith is for there to be one tool instead of four or five databases for a single client.”

The goal is not perfection. It is fewer systems, fewer manual steps, and more trust in the data.

How to test KYC/AML tools during vendor selection

Run a pilot on real matters, not demo scenarios.

Test with:

1. a low risk individual
2. a mid risk company
3. a high risk cross border matter with a client account

Compare:

• onboarding time
• accuracy of ownership mapping
• quality of the risk narrative
• number of manual steps
• clarity of the audit trail
• user friction for fee earners

When to pick Strise for law firms

• You want to cut non billable AML time.
  Strise automates client due diligence and compliance reporting, so lawyers and compliance teams spend less time on admin and more time on billable work.
• You need an AML platform proven with tier 1 firms.
  Strise is used by leading AML regulated organisations such as PwC showing it fits strict legal and regulatory standards.
• You struggle with manual data gathering from many sources.
  Strise replaces the manual process of pulling client data from registries, PDFs, spreadsheets, and emails by creating one unified client risk profile.
• You need earlier and clearer risk detection.
  Strise connects global registry data with premium PEP, sanctions, and UBO data from Dow Jones, then analyses it with AI to surface risk before matters progress.
• You want audit ready AML reports fast.
  Strise produces consistent, regulator ready compliance reports with full context and audit trails, reducing back and forth and rework.
• You must combine registry data with client supplied documents.
  Strise lets you merge non registry data like client declarations and constitutional documents with registry information, building a single auditable source of truth per client.

Key takeaway for law firms

Strise helps law firms speed up AML checks, reduce non billable hours, and start billable work sooner, without sacrificing audit quality or regulatory confidence.