Research conducted by TM showed that 36 out of 40 legal firms were still relying on 'traditional' photo identification and bills to verify client identity, posing a significant security risk through possible forgeries.
Only 10 per cent of these firms had implemented the appropriate Client Due Diligence systems into their working practices.
Indeed the failings leave firms wide open to the possibility of facing a potential fine or imprisonment for non-compliance.
To help protect against the risks posed by money-laundering, TM has launched a fully-compliant Client Validation Check to specifically target conveyancing firms and property professionals.
The service will cross-check client details with over 20 independent data sets to verify identity, and includes a risk indicator which will place the client into one of four specific categories.
John Carolan, managing director of TM, said that traditional practices still abounded in part due to the extra workload the regulatory compliant procedures demanded.
"Manual verification techniques are labour intensive and involve a lot of paperwork and such a time consuming process can have an adverse effect on client experience and may not comply with current guidelines," he said.
"Practices are increasingly aware of their responsibilities but are concerned about the time and cost implications of the new regulations."
