Do you actually know the role and responsibilities of an MLRO or MLCO?

Congratulations. You have agreed to be the Money Laundering Reporting Officer (MLRO). Or perhaps the Money Laundering Compliance Officer (MLCO). Possibly both.

You now hold one of the most important compliance roles in your firm.

No pressure.

The title sounds cool, but the reality of the responsibilities the role carries is a little weightier.

If a polite email from the SRA or your supervisory body landed in your inbox tomorrow, could you tell them or show them what you’ve done to help your firm prevent money laundering?

You are the person regulators will turn to if something goes wrong.

You are the one expected to know how the firm prevents money laundering, how concerns are handled, what your policies state and whether the systems in place are actually working.

If you’re not sure what you should be doing in this role, we’ve put together a brief breakdown for you.

What does an MLRO do?

The MLRO is the central point for suspicious activity within the firm.

Responsibilities typically include:

• Receiving and reviewing internal suspicious activity reports
• Deciding whether a report to the National Crime Agency is required
• Making and documenting Suspicious Activity Reports (SARs) where appropriate
• Seeking a defence against money laundering when necessary
• Maintaining proper records of decisions and reports
• Often acting as the main contact point for regulators and law enforcement
• Ensuring colleagues understand how and when to escalate concerns

You are the gatekeeper. The decision maker. The one who needs to stay calm when something looks off.

What does an MLCO do?

The MLCO focuses on the framework that keeps the firm compliant in the first place.

This usually involves:

• Overseeing the firm-wide AML risk assessment
• Ensuring policies, controls and procedures meet regulatory requirements
• Monitoring that those procedures are followed
• Arranging appropriate AML training across the firm
• Reporting to senior management on compliance issues
• Addressing weaknesses before they become regulatory problems

The role of an MLCO is in the name, “compliance”. It’s your responsibility to make sure the firm and everyone in it are compliant with regulations.

Need some training on being a good MLRO & MLCO?

We offer a single module course built around scenarios that feel uncomfortably familiar. As it’s only a 30-minute course, you can complete it without cancelling your afternoon.

By the time you’ve finished ‘The role and responsibilities of an MLRO/MLCO (law firms)’ module, you will learn to:

• Explain why law firms must appoint an MLRO and MLCO, and who is eligible to take on the roles
• Set out the core responsibilities of each position, including where they overlap
• Understand reporting obligations, internal controls and what regulators expect to see
• Recognise the personal and firm-wide consequences of getting it wrong
• Apply your knowledge to realistic situations that reflect genuine AML challenges

If you are the firm’s first line of defence against money laundering risk, you deserve training that reflects the responsibility.

Book a demo and see how we help MLROs and MLCOs feel confident and firmly in control.