The compliance paradox: From administrative nightmare to automated vigilance in the Belgian legal profession

Belgian law firms are operating in a fundamentally different compliance landscape than they did just a decade ago. Lawyers are no longer seen solely as trusted advisors, protected by professional secrecy, but increasingly as gatekeepers of the financial system. Anti-Money Laundering (AML) legislation, Client Due Diligence (CDD), UBO verification and sanctions screening have become embedded in the daily reality of legal practice.

The challenge is not a lack of willingness within the profession. It is the growing mismatch between regulatory expectations and operational feasibility.

WHEN COMPLIANCE STARTS TO UNDERMINE THE PRACTICE
Most Belgian lawyers recognise the pattern. Before a matter can be opened or billed, identity documents must be collected, UBO structures analysed and risk assessments documented. In theory, this is manageable. In practice, it leads to fragmented processes: Word templates, Excel trackers and email chains that quickly become outdated.

The Law of 18 September 2017 introduced a risk-based approach to AML compliance, requiring not only initial client identification but ongoing monitoring throughout the client relationship. That obligation is structural. Information collected at onboarding must remain accurate years later. For firms handling dozens or hundreds of active matters, manual follow-up makes continuous vigilance practically unattainable and exposes the firm to avoidable compliance risk.

RISING STAKES FOR BOTH LAWYERS AND FIRMS
Compliance failures today carry real consequences. The qualification of serious fiscal fraud as a predicate offence for money laundering has increased personal and professional exposure for lawyers advising on complex structures. CDD is no longer limited to “who is the client,” but extends to source of wealth and source of funds. At the same time, geopolitical sanctions have become a moving target. EU sanctions lists are updated frequently, and a client cleared during intake may become high-risk overnight. Manual screening cannot keep pace with this reality.

For partners, this translates into governance and reputational risk. For practicing lawyers, it results in last-minute stress, delayed transactions and difficult client conversations.

WHY TRADTIONAL COMPLIANCE TOOLS NO LONGER SUFFICE
Guidance from the Order of Flemish Bars provides a solid legal framework, but these models were never designed to function as live compliance systems. Static forms and checklists do not issue alerts, track changes or reflect real-time risk. As a result, compliance often becomes reactive, addressed when a transaction is imminent or when an audit looms. This approach is increasingly incompatible with the expectations of regulators and supervisors.

COMPLIANCE BY DESIGN: EMBEDDING CONTROL IN THE MATTER LIFECYCLE
A sustainable response requires a shift from document-based compliance to process-driven compliance. Platforms such as Microsoft Dynamics 365, combined with the NORRIQ Law Firm solution, enable law firms to embed KYC, UBO verification and risk monitoring directly into the lifecycle of a matter.

Files cannot move forward until mandatory checks are completed. Compliance data is stored as structured information rather than buried in documents, enabling monitoring, traceability and accountability. For partners, this provides governance and audit readiness. For lawyers, it removes the administrative friction that distracts from legal work.

WHAT THIS MEANS IN DAILY PRACTICE
Automation does not replace legal judgement, it protects it. Expiry dates of identity documents are monitored automatically, preventing last-minute disruptions. Clients upload sensitive documents through secure channels instead of email or messaging apps. Changes in corporate structures or UBO information are flagged early, allowing lawyers to advise proactively rather than react under pressure. Compliance shifts from a recurring interruption to a background safeguard.

PREPARING FOR THE NEXT REGULATORY PHASE
With AMLA becoming operational and the EU Single Rulebook approaching, expectations on law firms are shifting fast. Firms will need to be audit ready at all times: with a standardized client intake, one central data source and a complete audit trail of all KYC/AML checks. Regulators will no longer assess intent, but evidence. Without this foundation, audits quickly turn into time-consuming document searches, absorbing large amounts of billable time that should be spent on clients. Manual and fragmented processes do not just slow firms down; they create unnecessary regulatory risk.

By embedding compliance directly into matter management, firms move from reactive administration to continuous control. The NORRIQ Law Firm solution, built on Microsoft Dynamics 365, supports standardized workflows, centralized data and full traceability, enabling firms to meet regulatory demands without operational disruption.

NORRIQ supports law firms at every stage of that journey.