Anti-money laundering

Can I charge for due diligence checks?

Can solicitors charge their clients the costs of carrying out customer due diligence?

The Solicitors Regulation Authority (SRA) has confirmed that the costs of customer due diligence (CDD) can be passed onto clients irrespective of the extent of CDD that may be required.

The conditions are that:

  • the costs are clearly stated in your terms and conditions
  • you abide by any relevant sections of the SRA Transparency Rules

It’s important that clients are informed of and understand the cost in advance, as this will enable them to instruct an alternative firm if they are not agreeable to the cost.

For more information, see the SRA’s guidance and support on money laundering.

Disclaimer

While every effort has been made to ensure the accuracy of the information in this article, it does not constitute legal advice and cannot be relied upon as such. The Law Society does not accept any responsibility for liabilities arising as a result of reliance upon the information given.

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