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65 I L T A N E T . O R G • Exercise vigilance for red flags: Identify and carefully review aspects of the transaction where you have reasonable grounds to suspect that funds are criminal proceeds. Such circumstances may trigger reporting obligations. • Consider appropriate action: Determine what, if any, actions must be taken. • Document: Adequately document and record the previous steps. Technology can help minimize AML risk For years, the legal industry has lagged behind other industries in terms of technology adoption, as many legal professionals continue to work manually in an array of disparate systems. Firms often address potential AML concerns — risk assessments, verification of ultimate beneficial owners, directors, and potentially exposed persons, and revalidation — using semimanual processes, external data sources, and rekeyed data. The SRA recommends firms leverage technology to improve business operations, such as the risk assessment process. Especially due to the growing complexity of risk assessment standards and processes, firm leaders are encouraged to invest in risk and compliance technology, which can help professionals track a wide range of information, from client firmographics to the specific practice services provided by the firm. 17 For critical business tasks, like evaluating and engaging new business, technology can support law professionals by eliminating some of the manual, time-consuming processes that cause delay and errors. In 2021, the SRA published an encouraging report that indicates law firms are increasing their adoption of technology to improve practice operations, with expectations that use of legal-specific technology will increase as well, despite lagging to date. 17 Regarding general technology applications, most firms surveyed were using at least one form of technology to deliver legal services, and half said their use of technology increased due to the COVID-19 pandemic. According to the research, 87% use videoconferencing for client meetings, two-thirds store data in the cloud, and more than half used practice management or legal research software. While firms are embracing technology as a whole within their practice, only about a third of law firms said they are using legal-specific technology, and instead have opted for technology that is industry agnostic and thus are missing out on potential benefits of technology tailored to serve the legal industry. Interestingly, that number will likely increase as one quarter of survey respondents indicated they are planning to invest in legal-specific technology in the future. 17 One way to address and efficiently manage the requirements of AML is to invest in advanced technology designed specifically for the legal industry. The SRA has stated that one of its core strategic objectives is to support the adoption of technology and other innovations in the legal sector. While introducing new technology can be a significant lift for a firm, the potential benefits should outweigh the costs. Investing in Intapp Intake to streamline AML A major benefit to investing in technology for new business acceptance is that law firms do not have to create a framework from scratch. Intapp Intake provides law firms with a framework they can use to determine the risk level of engaging with a new client. The application provides a flexible approach to managing client and matter onboarding, automating due diligence, and demonstrating compliance throughout the client and matter lifecycle.

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