How Safe is Your Sensitive Data? Examining AML Compliance in the Wake of a Security Breach

27 March 2023

The Importance of AML Compliance and Data Security in Law Firms

In recent news, a security breach on Latitude Financial’s databases has stolen thousands of New Zealand driver’s licenses and passport details. The Department of Internal Affairs in New Zealand has warned citizens to be cautious of security breaches that lead to personal data being stolen, stating that there is a pattern of such breaches occurring in various organisations.

Latitude Financial’s Security Breach: A Wake-up Call for Law Firms

This breach has raised a significant question regarding the safety of the personal data that law firms store as per the anti-money laundering (AML) requirements. Are law firms doing enough to prevent bad actors from stealing this sensitive data? Is it safe to store important documents like passports and driver’s licenses? These are some of the questions that we must ponder over. It is a question you should be asking both your IT provider and your software vendors.

How Law Firms Can Safely Store Important Documents While Maintaining AML Compliance

We are often asked to provide copies of our personal documents for various purposes, and we usually do so without giving it a second thought. However, this breach shows that it’s important to question why certain information is being requested and whether there might be a risk of oversharing data.

The Department of Internal Affairs has recommended that companies and individuals use digital forms of identification like Real Me to verify identity, rather than requesting copies of data like passports and driver’s licences. This begs the question: Are law firms taking enough measures to implement digital identification systems and protect sensitive data?

Therefore, it is vital that law firms and organisations review their security measures and implement stronger measures to protect their client’s sensitive data. We must all take steps to safeguard our data and question why it is being shared, as well as the measures in place to keep it safe.

So, how safe is your personal data, and what steps are you taking to protect it? Have you ever been asked to provide copies of sensitive documents like passports and driver’s licenses? What measures should organisations take to prevent such security breaches? These are some of the questions we must ponder over and take action on to ensure our data’s safety.