A legal practice is subject to an inspection from the Regulation Department of the Law Society every five years, with new firms being inspected around three years after opening. However, the Society has moved to a more risk-based approach so, for example, if your reporting accountant’s report is late or qualified, or if there are complaints against you, this may trigger an inspection. Follow-up inspections are also quite common.Law Society inspections are conducted to ensure compliance with the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018, as well as the Solicitors Acts 1954-2015, Legal Services Regulation Act 2015, and the Solicitors Accounts Regulations 2014. As part of the Society’s monitoring process, solicitors are required to demonstrate that they have policies and procedures in place for the prevention and detection of money-laundering and terrorist-financing offences.