The 7 Most Common AML Mistakes Estate Planners Make - And How to Avoid Them
- Charlotte Ponder
- Apr 20
- 3 min read
Anti‑Money Laundering (AML) compliance is one of the most misunderstood - and most inconsistently applied - responsibilities in the will‑writing and estate‑planning sector. Firms think they are doing everything they are required to do, but their processes and documentation tell a different story.
Below are the seven most common AML mistakes estate planners and will writers make, why they matter, and how to fix them before they become a problem.
1. Treating AML as a “tick‑box” exercise
Many firms obtain ID documentation and file it away, believing that’s the extent of AML. In reality, AML is a risk‑based, ongoing process, not a one‑off task.
Why it’s a problem: HMRC expects firms to demonstrate active risk assessment, monitoring, and decision‑making - not just paperwork.
How to avoid it:
Build AML into your workflow, to prompt you and your team to think about it throughout.
Document your reasoning, not just your results.
Review risk all the way through the matter, especially if circumstances change.
2. Not having a written, tailored AML policy
Some firms rely on generic templates or outdated documents that don’t reflect how they actually operate.
Why it’s a problem: HMRC will ask for your AML policy during a supervision visit. If it doesn’t match your real‑world processes, it’s considered non‑compliant.
How to avoid it:
Ensure that you have a policy that reflects your business model, client types, and risk profile.
Review it regularly, and update it annually or when regulations change.
Ensure all staff understand and follow it.
3. Weak or inconsistent client due diligence (CDD)
Common issues include:
Accepting poor‑quality ID
Obtaining documents, but not carrying out any verification checks on them
Skipping checks for “trusted” clients
Not understanding when enhanced due diligence (EDD) is required
Why it’s a problem: Inconsistent CDD is one of the top reasons firms fail AML audits.
How to avoid it:
Use a structured CDD checklist.
Verify ID documentation that you obtain from the client - don’t rely on visual inspection alone.
Apply EDD for high‑risk clients, complex structures, or unusual instructions.
Record why you assessed the client as standard or high risk.
4. Confusing Source of Funds (SoF) with Source of Wealth (SoW)
Many will writers and estate planners ask clients where the money or property (being settled into trust, for example) is coming from today (SoF) but fail to ask how the client acquired their wealth in general (SoW).
Why it’s a problem: SoW is essential for identifying unexplained wealth, criminal proceeds, or red flags.
How to avoid it:
Ask both questions:
How is this transaction being funded? (SoF)
How did you acquire your wealth over time? (SoW)
Document the client’s explanation and your assessment.
Request evidence where appropriate.
5. Poor record‑keeping
Firms often keep ID documents but fail to retain:
Risk assessments
Notes of AML decisions
Evidence of ongoing monitoring
Staff training records
Policy updates
Why it’s a problem: HMRC expects firms to keep AML records for five years and to demonstrate a clear audit trail.
How to avoid it:
Create a standard AML file structure and make sure it's in place.
Store decisions, not just documents.
Keep training logs and policy review notes.
6. No formal firm‑wide risk assessment
Many will writers and estate planners may be doing individual client‑level risk assessments as part of their fact find, but don't have a business‑wide assessment - which is a legal requirement.
Why it’s a problem: HMRC views the firm‑wide risk assessment as the foundation of your AML framework. Without it, your policies and controls cannot be considered adequate.
How to avoid it: Your firm‑wide risk assessment should cover:
Client types
Services offered
Delivery channels
Geographic risks
Transaction risks
Internal controls and mitigations
Review it annually and whenever your business model changes.
7. Inadequate or infrequent AML training
Some firms rely on ad‑hoc training or assume staff “pick it up as they go.”
Why it’s a problem: AML regulations require regular, documented training for all staff involved in client work - including admin teams.
How to avoid it:
Provide structured AML training at least annually.
Include case studies relevant to will writing and estate planning.
Keep a training log with dates, content, and attendees.
Test understanding through quizzes or scenario‑based exercises.
Conclusion: Compliance isn’t about fear - it’s about protection
AML compliance protects your business, your clients, and your professional reputation. Most firms don’t fail because they’re reckless; they fail because they don’t have the right structure, documentation, or support.
WillComply helps will writers and estate planners build practical, proportionate, and confidence‑building AML frameworks that stand up to HMRC scrutiny.
If you’d like help reviewing your AML processes, updating your policies, or training your staff, we’re here to support you.
Download our free checklist for will writers and estate planners for peace of mind:
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