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Firms are being fined for AML non-compliance irrespective of their size.
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Assessment Legal ensure that all auditors are professional experienced persons. In addition each auditor carries Professional Indemnity Insurance cover. To add to this we certify each Auditor with Approachable Certification a UKAS accredited Certification Body.
About Assessment Legal
Assessment Legal was formed by Tim Prior and Paul Wilkinson to create a Best Practice Standard. This quality standard was adopted by LEAP and is known as the LEAP Best Practice Standard for Conveyancing. To date over 4,000 remote audits have been conducted by our team of experienced compliance auditors for LEAP Software.
Latest Posts
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Updated SRA Guidance on High-Risk Third Countries
Historically, HRTCs were defined by the European Union. Following Brexit, the UK adopted its own list under Schedule 3ZA of the Money Laundering Regulations 2017 (MLR 2017). This changed on 22 January 2024, when the definition was updated to align with the Financial Action Task Force (FATF) lists: High-risk jurisdictions subject to a call for…
-
Important changes to the Money Laundering Regulations 2017 – effective 18 November 2025
A small but significant pair of amendments have been introduced to strengthen the UK’s anti-money laundering framework. These changes were implemented via Schedule 2 of the ECCTA 2023 (Consequential, Incidental and Miscellaneous Provisions) Regulations 2025 and are now live here. What’s Changed? Regulation 28 Clarification has been added to confirm that the Register of Overseas…
-
Conducting Litigation: Practical Steps for Compliance following the Mazur judgment
The Solicitors Regulation Authority (SRA) has provided guidance to help firms understand their obligations when it comes to conducting litigation. This is an area where confusion often arises, particularly around the distinction between supporting litigation and conducting litigation. Here’s what you need to know. Who Can Conduct Litigation? The SRA confirms that people who are…
-
DAMLs and DATFs: What Law Firms Need to Know About Defence Requests
When handling client funds, you may encounter situations where continuing an activity could risk committing a money laundering or terrorist financing offence. In these cases, UK law allows you to request a defence—commonly known as “consent”—from the UK Financial Intelligence Unit (UKFIU). The full UKFIU guidance on DAMLs and DATFs can be found here. Here’s…
-
Understanding SAR Guidance: What Every Law Firm Needs to Know
Submitting Suspicious Activity Reports (SARs) is a critical part of anti-money laundering (AML) compliance. The UK Financial Intelligence Unit (UKFIU), part of the National Crime Agency (NCA), is the only body authorised to receive SARs. Here’s what small firms need to know: The full UKFIU guidance on submitting a SAR can be found here. What…
-
Registering for the SAR Portal: A Quick Guide for Busy Law Firms
If your firm handles anti-money laundering (AML) compliance, you’ll need to use the SAR Portal—the UKFIU’s secure platform for submitting Suspicious Activity Reports (SARs). It replaces the old SAR Online system, so even if you had an account before, you must register again. The full UKFIU guidance on using the SAR Portal can be found…
-
SRA Update: Sanctions Information – 11 November 2025
The Solicitors Regulation Authority (SRA) has published important guidance on sanctions compliance in its latest update. This reinforces the need for firms to maintain robust systems and controls under the UK sanctions regime. Find the full guidance here. Key Messages from the SRA “Sanctions remain a key regulatory focus.” The SRA highlights that compliance with…
-
Mastering Source of Funds and Wealth Compliance
The Solicitors Regulation Authority (SRA) recently published a thematic review on source of funds and wealth compliance, highlighting key challenges and best practices for firms. For small law firms, where resources are often stretched, understanding these requirements is essential to avoid regulatory breaches and maintain client trust. Why This Matters Money laundering risks are a…
-
SRA Anti-Money Laundering Annual Report 2024–25: Key Insights
The Solicitors Regulation Authority (SRA) has published its AML Annual Report for 2024–25, highlighting progress, challenges, and priorities in tackling money laundering within the legal sector. This year’s report underscores the SRA’s commitment to proactive regulation and risk-based supervision. The full report can be found here. Headline Findings Proactive Regulation and Increased Oversight The SRA…
-
Navigating AML and CTF Regulatory Changes
The regulatory landscape for Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) is undergoing a significant transformation. The UK government has announced plans to unify the regulation of AML and CTF under the Financial Conduct Authority (FCA), with the Solicitors Regulation Authority (SRA) managing the transition while continuing its current oversight. FCA Regulation Unification Plan The…
-
SRA responds to Mazur Case
Following the High Court’s decision in Mazur v Charles Russell Speechlys, the Solicitors Regulation Authority (SRA) has now issued a formal statement, offering much-needed clarification for legal professionals and firms navigating the implications of the ruling. SRA’s Key Message: No Change in Law and a timely reminder The SRA confirms that the judgment does not…
-
Implications of the Mazur Case for litigants
In the recent High Court decision in Mazur v Charles Russell Speechlys, the defendants—acting in person—requested that the individual representing the claimants be replaced by a solicitor with a valid practicing certificate. Although the court initially imposed a stay, it was later lifted, and a costs order was made against the defendants. They appealed, arguing…
-
Navigating SRA Accounts Rules: Key Insights from Hazlewoods’ 2024 Audit Round-Up
As law firms continue to navigate the complexities of client money compliance, Hazlewoods — a leading firm of business advisers and accountants — has released its annual SRA Accounts Rules audit round-up for the 2024 calendar year. With over 150 Accountant’s Reports signed off annually, Hazlewoods offers a valuable lens into the most common breaches,…
-
A Fresh Look at Suspicious Activity Reporting
Suspicious activity reporting isn’t just a regulatory checkbox—it’s a vital part of protecting your firm and the wider financial system. In Update 143, the Solicitors Regulation Authority (SRA) has placed renewed emphasis on the importance of high-quality Suspicious Activity Reports (SARs), offering practical tools to help firms improve their approach. For law firms, this update…
-
Intelligence Sharing and AML: What Law Firms Need to Know from the SRA Update 143
In the fight against financial crime, small law firms play a crucial frontline role. The Solicitors Regulation Authority (SRA) has reinforced this responsibility in its Update 143, published in September 2025, which outlines new measures to strengthen intelligence sharing across the legal sector. These developments are particularly relevant for small firms, which may not have…
-
Strengthening Your Defences: SRA Guidance Update 143 – 10 September 2025
In an era of increasing financial crime sophistication, small law firms must remain vigilant and proactive in their anti-money laundering (AML) efforts. The Solicitors Regulation Authority (SRA) has recently updated its sectoral risk assessment following the UK Government’s latest National Risk Assessment (NRA), and the implications are significant—especially for smaller practices that may lack the…
-
Failure to Prevent Fraud Offence Comes into Effect on 1 September 2025
As of 1 September 2025, the UK’s new Failure to Prevent Fraud offence is officially in force. Introduced under the Economic Crime and Corporate Transparency Act 2023, this landmark legislation creates a corporate criminal offence that holds large organisations liable for fraud committed by employees, agents, subsidiaries, or other “associated persons”—unless they can demonstrate that…
-
MLRs Consultation Response – 6 August 2025
On 6 August 2025, HM Treasury published its long-awaited response to the 2024 consultation on the Money Laundering Regulations (MLRs). The proposed amendments aim to streamline AML compliance, reduce unnecessary regulatory burdens, and enhance the overall effectiveness of the UK’s AML framework [1]. For small law firms and sole practitioners, these changes are particularly relevant.…
-
UK National Risk Assessment – 17 July 2025
On 17 July 2025, the UK Home Office and HM Treasury published the latest National Risk Assessment (NRA) on Money Laundering and Terrorist Financing [1] [2]. This comprehensive report outlines the evolving threats to the UK’s financial system and highlights the sectors most vulnerable to abuse—including the legal profession. For small law firms and sole…
-
OFSI Launches Online Forms
On 17 July 2025, the Office of Financial Sanctions Implementation (OFSI) launched a suite of new online forms designed to streamline the process of licence applications, sanctions breach reporting, and other key compliance activities [1]. This marks a significant step in modernising how legal professionals interact with OFSI and manage their financial sanctions obligations. For…
-
POCA Thresholds Increased
On 10 July 2025, the UK government made a significant change to the Proceeds of Crime Act 2002 (POCA) by increasing the threshold for two key exemptions from £1,000 to £3,000. The change, enacted through the Proceeds of Crime (Money Laundering) (Threshold Amount) (Amendment) Order 2025, came into force on 31 July 2025 [1]. This…
-
Understanding the FATF Grey and Black Lists – 13 June 2025 Update
On 13 June 2025, the Financial Action Task Force (FATF) released its latest update on jurisdictions under increased monitoring (commonly referred to as the grey list) and those subject to a call for action (the black list) [1] [2]. These lists are critical tools for identifying countries with strategic deficiencies in their anti-money laundering (AML)…
-
Sanctions Compliance Risks: What SRA OFSI Findings Means for Law Firms
On 4 June 2025, the Solicitors Regulation Authority (SRA) issued Update 140, highlighting the findings of the Office of Financial Sanctions Implementation (OFSI) in its first-ever Legal Services Threat Assessment [1]. The report outlines the key sanctions compliance risks facing the legal sector and urges firms—especially those in high-risk areas—to take immediate action. For small…
-
SRA ECCTA Fining Regime Reforms – 12 May 2025
In May 2025, the Solicitors Regulation Authority (SRA) announced significant reforms to its fining regime, marking a new chapter in how financial penalties are applied across the legal profession. These changes follow the enactment of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), which came into force in March 2024 and granted the SRA…
-
SRA’s 2025/26 Business Plan – Strengthening AML and Ethical Standards – 8 May 2025
On 8 May 2025, the Solicitors Regulation Authority (SRA) published its 2025/26 Business Plan, setting out its strategic priorities for the final year of its current Corporate Strategy (2023–2026). Against a backdrop of rising regulatory risks, increasing misconduct investigations, and evolving threats in the legal sector, the SRA is sharpening its focus on anti-money laundering…
-
SRA Approves First AI-Only Law Firm – 6 May 2025
In a landmark move that could reshape the legal landscape, the Solicitors Regulation Authority (SRA) approved the UK’s first AI-only law firm, Garfield.Law Ltd, in May 2025 [1]. This decision marks a pivotal moment in the evolution of legal services, especially for small law firms and sole practitioners who may be wondering what this means…
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SFO Guidance on Deferred Prosecution Agreements (DPAs) – 24 April 2025
On 24 April 2025, the Serious Fraud Office (SFO) released updated guidance aimed at helping businesses—including small law firms—understand how to raise concerns about suspected fraud or corruption and how to engage with the SFO when wrongdoing is identified. Why This Matters for Small Firms Small law firms may find themselves advising corporate clients or…
-
What Law Firms Need to Know About ECCTA 2023 and Companies House Reforms in April 2025
The Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023) marks a significant shift in the UK’s approach to tackling financial crime. Gradually implemented since 2024, ECCTA aims to strengthen transparency, disrupt economic crime, and modernise the UK’s corporate framework [1]. Key Objectives of ECCTA 2023 Improve transparency of UK companies and legal entities Empower…
-
Key LSAG AML Guidance Updates – April 2025
On 23 April 2025, the Legal Sector Affinity Group (LSAG) released a significant update to its Anti-Money Laundering (AML) Guidance, approved by HM Treasury. This update replaces the March 2023 guidance and the December 2023 addendum, and is now the authoritative source for AML compliance across the legal sector [1]. For small law firms and…
-
HRTCs List Update – 21 February 2025
The Financial Action Task Force (FATF) has released its updated list of High-Risk Third Countries (HRTCs) as of 21 February 2025, identifying jurisdictions with strategic deficiencies in their AML/CFT frameworks. For small law firms, this update is a critical reminder to apply Enhanced Due Diligence (EDD) and ongoing monitoring when dealing with clients or transactions…
-
SRA Open Consultation on Residual Balances in 14 November 2024
While some firms have improved their procedures in response to SRA Guidance and advice, many still struggle to comply with the rules governing residual balances. Failure to address residual balances can result in significant consequences, such as reputational damage, business disruption, and increased professional indemnity insurance (PII) premiums. What are Residual Balances? Residual balances occur…
-
The Highest AML Fine by the SRA was £24,540 in 2024
The Solicitors Regulation Authority (SRA) has recently imposed significant fines on multiple law firms for breaches of anti-money laundering (AML) regulations, with the highest fine reaching £24,540. A common failing among these firms was the absence of a firm-wide risk assessment (FWRA), along with inadequate policies, controls, and procedures (PCPs) to prevent money laundering and…
-
The SRA Warns over Sham-Litigation
The Solicitors Regulation Authority (SRA) has warned law firms about sham litigation, a tactic criminals use to bypass anti-money laundering (AML) rules by disguising illicit funds as legitimate legal disputes. In new guidance published by the SRA in January 2025, the regulator highlighted the case of fraudster Narinder Kaur, who manipulated multiple firms into pursuing…
-
London Firm Fined for Residual Balances, Source of Funds Checks and Non-Compliances in AML
A London-based law firm and its director have been fined £25,000 each – totalling £50,000 – for serious compliance failures, including breaches of the SRA Accounting Rules and anti-money laundering (AML) deficiencies. The Solicitors Disciplinary Tribunal (SDT) found that the director falsely claimed that the firm had implemented a Practice-Wide Risk Assessment (PWRA). An investigation…
-
AML Guidance Note from the SRA regarding Firm-Wide Risk Assessments – Updated December 2024
Anti-money laundering (AML) compliance is not optional—it’s a legal obligation. For small law firms and sole practitioners, understanding and implementing a Firm-Wide Risk Assessment (FWRA) is essential to meet the requirements of the Money Laundering Regulations 2017 (MLRs) and avoid regulatory breaches. Why This Guidance Matters The SRA’s AML Guidance Note makes it clear: while…
-
SRA Faces Enforcement Over Mishandling of Axiom Ince
According to an article by the Law Gazette, the Solicitors Regulation Authority (SRA) faces historic enforcement action by the Legal Services Board (LSB) following its mishandling of the 2023 collapse of law firm Axiom Ince. An independent review found the SRA’s actions were inadequate and ineffective, with failures in oversight leading to the loss of…
-
SDT Budget Set to Rise by 25% Amid Surge in Disciplinary Cases
According to Legal Futures, the Solicitors Disciplinary Tribunal (SDT) is set for a 25% budget increase in 2025, rising from £2.5 million to £3.1 million, in response to a spike in cases referred by the Solicitors Regulation Authority (SRA). This funding boost, sourced from practising fees paid by solicitors, will support an expected 300 sitting…
-
Family Lawyers can face Criminal Liability
The World Uyghur Congress Case Court of Appeal June 2024 Family lawyers need to be aware of the risk of unintentionally receiving criminal property as payment for legal fees, particularly after the judgement handed down in June 2024 in the Court of Appeal decision in R (World Uyghur Congress) v National Crime Agency [2024] EWCA…
-
Officers Uncover £55 Million Laundered through Chinese Underground Banking Channels in the UK
The Metropolitan Police released an article in August 2024, detailing a successful persecution of seven members of a criminal Chinese underground banking group by British police forces. Following an operation that spanned more than three years, a money laundering network operating through Chinese underground banking channels has been dismantled. The group, which laundered over £55…
-
Lawyers Condemn the SRA’s Increased Fining Powers
In September 2024, a growing number of legal professionals have voiced strong opposition to the Solicitors Regulation Authority’s (SRA) proposed plans to drastically increase its fining powers. Several prominent legal bodies, including the City of London Law Society, have already raised alarms, branding the proposals as unnecessary, confusing, and potentially unlawful. The Birmingham Law Society’s…
-
Important changes to the Money Laundering Regulations 2017 – effective 18 November 2025
A small but significant pair of amendments have been introduced to strengthen the UK’s anti-money laundering framework. These changes were implemented via Schedule 2 of the ECCTA 2023 (Consequential, Incidental and Miscellaneous Provisions) Regulations 2025 and are now live here. What’s Changed? Regulation 28 Clarification has been added to confirm that the Register of Overseas…
-
Updated SRA Guidance on High-Risk Third Countries
Historically, HRTCs were defined by the European Union. Following Brexit, the UK adopted its own list under Schedule 3ZA of the Money Laundering Regulations 2017 (MLR 2017). This changed on 22 January 2024, when the definition was updated to align with the Financial Action Task Force (FATF) lists: High-risk jurisdictions subject to a call for…
-
Conducting Litigation: Practical Steps for Compliance following the Mazur judgment
The Solicitors Regulation Authority (SRA) has provided guidance to help firms understand their obligations when it comes to conducting litigation. This is an area where confusion often arises, particularly around the distinction between supporting litigation and conducting litigation. Here’s what you need to know. Who Can Conduct Litigation? The SRA confirms that people who are…
-
DAMLs and DATFs: What Law Firms Need to Know About Defence Requests
When handling client funds, you may encounter situations where continuing an activity could risk committing a money laundering or terrorist financing offence. In these cases, UK law allows you to request a defence—commonly known as “consent”—from the UK Financial Intelligence Unit (UKFIU). The full UKFIU guidance on DAMLs and DATFs can be found here. Here’s…
-
Understanding SAR Guidance: What Every Law Firm Needs to Know
Submitting Suspicious Activity Reports (SARs) is a critical part of anti-money laundering (AML) compliance. The UK Financial Intelligence Unit (UKFIU), part of the National Crime Agency (NCA), is the only body authorised to receive SARs. Here’s what small firms need to know: The full UKFIU guidance on submitting a SAR can be found here. What…
-
Registering for the SAR Portal: A Quick Guide for Busy Law Firms
If your firm handles anti-money laundering (AML) compliance, you’ll need to use the SAR Portal—the UKFIU’s secure platform for submitting Suspicious Activity Reports (SARs). It replaces the old SAR Online system, so even if you had an account before, you must register again. The full UKFIU guidance on using the SAR Portal can be found…
-
SRA Update: Sanctions Information – 11 November 2025
The Solicitors Regulation Authority (SRA) has published important guidance on sanctions compliance in its latest update. This reinforces the need for firms to maintain robust systems and controls under the UK sanctions regime. Find the full guidance here. Key Messages from the SRA “Sanctions remain a key regulatory focus.” The SRA highlights that compliance with…
-
Mastering Source of Funds and Wealth Compliance
The Solicitors Regulation Authority (SRA) recently published a thematic review on source of funds and wealth compliance, highlighting key challenges and best practices for firms. For small law firms, where resources are often stretched, understanding these requirements is essential to avoid regulatory breaches and maintain client trust. Why This Matters Money laundering risks are a…
-
SRA Anti-Money Laundering Annual Report 2024–25: Key Insights
The Solicitors Regulation Authority (SRA) has published its AML Annual Report for 2024–25, highlighting progress, challenges, and priorities in tackling money laundering within the legal sector. This year’s report underscores the SRA’s commitment to proactive regulation and risk-based supervision. The full report can be found here. Headline Findings Proactive Regulation and Increased Oversight The SRA…
-
Navigating AML and CTF Regulatory Changes
The regulatory landscape for Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) is undergoing a significant transformation. The UK government has announced plans to unify the regulation of AML and CTF under the Financial Conduct Authority (FCA), with the Solicitors Regulation Authority (SRA) managing the transition while continuing its current oversight. FCA Regulation Unification Plan The…
-
SRA responds to Mazur Case
Following the High Court’s decision in Mazur v Charles Russell Speechlys, the Solicitors Regulation Authority (SRA) has now issued a formal statement, offering much-needed clarification for legal professionals and firms navigating the implications of the ruling. SRA’s Key Message: No Change in Law and a timely reminder The SRA confirms that the judgment does not…
-
Implications of the Mazur Case for litigants
In the recent High Court decision in Mazur v Charles Russell Speechlys, the defendants—acting in person—requested that the individual representing the claimants be replaced by a solicitor with a valid practicing certificate. Although the court initially imposed a stay, it was later lifted, and a costs order was made against the defendants. They appealed, arguing…
-
Navigating SRA Accounts Rules: Key Insights from Hazlewoods’ 2024 Audit Round-Up
As law firms continue to navigate the complexities of client money compliance, Hazlewoods — a leading firm of business advisers and accountants — has released its annual SRA Accounts Rules audit round-up for the 2024 calendar year. With over 150 Accountant’s Reports signed off annually, Hazlewoods offers a valuable lens into the most common breaches,…
-
A Fresh Look at Suspicious Activity Reporting
Suspicious activity reporting isn’t just a regulatory checkbox—it’s a vital part of protecting your firm and the wider financial system. In Update 143, the Solicitors Regulation Authority (SRA) has placed renewed emphasis on the importance of high-quality Suspicious Activity Reports (SARs), offering practical tools to help firms improve their approach. For law firms, this update…
-
Intelligence Sharing and AML: What Law Firms Need to Know from the SRA Update 143
In the fight against financial crime, small law firms play a crucial frontline role. The Solicitors Regulation Authority (SRA) has reinforced this responsibility in its Update 143, published in September 2025, which outlines new measures to strengthen intelligence sharing across the legal sector. These developments are particularly relevant for small firms, which may not have…
-
Strengthening Your Defences: SRA Guidance Update 143 – 10 September 2025
In an era of increasing financial crime sophistication, small law firms must remain vigilant and proactive in their anti-money laundering (AML) efforts. The Solicitors Regulation Authority (SRA) has recently updated its sectoral risk assessment following the UK Government’s latest National Risk Assessment (NRA), and the implications are significant—especially for smaller practices that may lack the…
-
Failure to Prevent Fraud Offence Comes into Effect on 1 September 2025
As of 1 September 2025, the UK’s new Failure to Prevent Fraud offence is officially in force. Introduced under the Economic Crime and Corporate Transparency Act 2023, this landmark legislation creates a corporate criminal offence that holds large organisations liable for fraud committed by employees, agents, subsidiaries, or other “associated persons”—unless they can demonstrate that…
-
MLRs Consultation Response – 6 August 2025
On 6 August 2025, HM Treasury published its long-awaited response to the 2024 consultation on the Money Laundering Regulations (MLRs). The proposed amendments aim to streamline AML compliance, reduce unnecessary regulatory burdens, and enhance the overall effectiveness of the UK’s AML framework [1]. For small law firms and sole practitioners, these changes are particularly relevant.…
-
UK National Risk Assessment – 17 July 2025
On 17 July 2025, the UK Home Office and HM Treasury published the latest National Risk Assessment (NRA) on Money Laundering and Terrorist Financing [1] [2]. This comprehensive report outlines the evolving threats to the UK’s financial system and highlights the sectors most vulnerable to abuse—including the legal profession. For small law firms and sole…
-
OFSI Launches Online Forms
On 17 July 2025, the Office of Financial Sanctions Implementation (OFSI) launched a suite of new online forms designed to streamline the process of licence applications, sanctions breach reporting, and other key compliance activities [1]. This marks a significant step in modernising how legal professionals interact with OFSI and manage their financial sanctions obligations. For…
-
POCA Thresholds Increased
On 10 July 2025, the UK government made a significant change to the Proceeds of Crime Act 2002 (POCA) by increasing the threshold for two key exemptions from £1,000 to £3,000. The change, enacted through the Proceeds of Crime (Money Laundering) (Threshold Amount) (Amendment) Order 2025, came into force on 31 July 2025 [1]. This…
-
Understanding the FATF Grey and Black Lists – 13 June 2025 Update
On 13 June 2025, the Financial Action Task Force (FATF) released its latest update on jurisdictions under increased monitoring (commonly referred to as the grey list) and those subject to a call for action (the black list) [1] [2]. These lists are critical tools for identifying countries with strategic deficiencies in their anti-money laundering (AML)…
-
Sanctions Compliance Risks: What SRA OFSI Findings Means for Law Firms
On 4 June 2025, the Solicitors Regulation Authority (SRA) issued Update 140, highlighting the findings of the Office of Financial Sanctions Implementation (OFSI) in its first-ever Legal Services Threat Assessment [1]. The report outlines the key sanctions compliance risks facing the legal sector and urges firms—especially those in high-risk areas—to take immediate action. For small…
-
SRA ECCTA Fining Regime Reforms – 12 May 2025
In May 2025, the Solicitors Regulation Authority (SRA) announced significant reforms to its fining regime, marking a new chapter in how financial penalties are applied across the legal profession. These changes follow the enactment of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), which came into force in March 2024 and granted the SRA…
-
SRA’s 2025/26 Business Plan – Strengthening AML and Ethical Standards – 8 May 2025
On 8 May 2025, the Solicitors Regulation Authority (SRA) published its 2025/26 Business Plan, setting out its strategic priorities for the final year of its current Corporate Strategy (2023–2026). Against a backdrop of rising regulatory risks, increasing misconduct investigations, and evolving threats in the legal sector, the SRA is sharpening its focus on anti-money laundering…
-
SRA Approves First AI-Only Law Firm – 6 May 2025
In a landmark move that could reshape the legal landscape, the Solicitors Regulation Authority (SRA) approved the UK’s first AI-only law firm, Garfield.Law Ltd, in May 2025 [1]. This decision marks a pivotal moment in the evolution of legal services, especially for small law firms and sole practitioners who may be wondering what this means…
-
SFO Guidance on Deferred Prosecution Agreements (DPAs) – 24 April 2025
On 24 April 2025, the Serious Fraud Office (SFO) released updated guidance aimed at helping businesses—including small law firms—understand how to raise concerns about suspected fraud or corruption and how to engage with the SFO when wrongdoing is identified. Why This Matters for Small Firms Small law firms may find themselves advising corporate clients or…
-
What Law Firms Need to Know About ECCTA 2023 and Companies House Reforms in April 2025
The Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023) marks a significant shift in the UK’s approach to tackling financial crime. Gradually implemented since 2024, ECCTA aims to strengthen transparency, disrupt economic crime, and modernise the UK’s corporate framework [1]. Key Objectives of ECCTA 2023 Improve transparency of UK companies and legal entities Empower…
-
Key LSAG AML Guidance Updates – April 2025
On 23 April 2025, the Legal Sector Affinity Group (LSAG) released a significant update to its Anti-Money Laundering (AML) Guidance, approved by HM Treasury. This update replaces the March 2023 guidance and the December 2023 addendum, and is now the authoritative source for AML compliance across the legal sector [1]. For small law firms and…
-
HRTCs List Update – 21 February 2025
The Financial Action Task Force (FATF) has released its updated list of High-Risk Third Countries (HRTCs) as of 21 February 2025, identifying jurisdictions with strategic deficiencies in their AML/CFT frameworks. For small law firms, this update is a critical reminder to apply Enhanced Due Diligence (EDD) and ongoing monitoring when dealing with clients or transactions…
-
SRA Open Consultation on Residual Balances in 14 November 2024
While some firms have improved their procedures in response to SRA Guidance and advice, many still struggle to comply with the rules governing residual balances. Failure to address residual balances can result in significant consequences, such as reputational damage, business disruption, and increased professional indemnity insurance (PII) premiums. What are Residual Balances? Residual balances occur…
-
The Highest AML Fine by the SRA was £24,540 in 2024
The Solicitors Regulation Authority (SRA) has recently imposed significant fines on multiple law firms for breaches of anti-money laundering (AML) regulations, with the highest fine reaching £24,540. A common failing among these firms was the absence of a firm-wide risk assessment (FWRA), along with inadequate policies, controls, and procedures (PCPs) to prevent money laundering and…
-
The SRA Warns over Sham-Litigation
The Solicitors Regulation Authority (SRA) has warned law firms about sham litigation, a tactic criminals use to bypass anti-money laundering (AML) rules by disguising illicit funds as legitimate legal disputes. In new guidance published by the SRA in January 2025, the regulator highlighted the case of fraudster Narinder Kaur, who manipulated multiple firms into pursuing…
-
London Firm Fined for Residual Balances, Source of Funds Checks and Non-Compliances in AML
A London-based law firm and its director have been fined £25,000 each – totalling £50,000 – for serious compliance failures, including breaches of the SRA Accounting Rules and anti-money laundering (AML) deficiencies. The Solicitors Disciplinary Tribunal (SDT) found that the director falsely claimed that the firm had implemented a Practice-Wide Risk Assessment (PWRA). An investigation…
-
AML Guidance Note from the SRA regarding Firm-Wide Risk Assessments – Updated December 2024
Anti-money laundering (AML) compliance is not optional—it’s a legal obligation. For small law firms and sole practitioners, understanding and implementing a Firm-Wide Risk Assessment (FWRA) is essential to meet the requirements of the Money Laundering Regulations 2017 (MLRs) and avoid regulatory breaches. Why This Guidance Matters The SRA’s AML Guidance Note makes it clear: while…
-
SRA Faces Enforcement Over Mishandling of Axiom Ince
According to an article by the Law Gazette, the Solicitors Regulation Authority (SRA) faces historic enforcement action by the Legal Services Board (LSB) following its mishandling of the 2023 collapse of law firm Axiom Ince. An independent review found the SRA’s actions were inadequate and ineffective, with failures in oversight leading to the loss of…
-
SDT Budget Set to Rise by 25% Amid Surge in Disciplinary Cases
According to Legal Futures, the Solicitors Disciplinary Tribunal (SDT) is set for a 25% budget increase in 2025, rising from £2.5 million to £3.1 million, in response to a spike in cases referred by the Solicitors Regulation Authority (SRA). This funding boost, sourced from practising fees paid by solicitors, will support an expected 300 sitting…
-
Family Lawyers can face Criminal Liability
The World Uyghur Congress Case Court of Appeal June 2024 Family lawyers need to be aware of the risk of unintentionally receiving criminal property as payment for legal fees, particularly after the judgement handed down in June 2024 in the Court of Appeal decision in R (World Uyghur Congress) v National Crime Agency [2024] EWCA…
-
Officers Uncover £55 Million Laundered through Chinese Underground Banking Channels in the UK
The Metropolitan Police released an article in August 2024, detailing a successful persecution of seven members of a criminal Chinese underground banking group by British police forces. Following an operation that spanned more than three years, a money laundering network operating through Chinese underground banking channels has been dismantled. The group, which laundered over £55…
-
Lawyers Condemn the SRA’s Increased Fining Powers
In September 2024, a growing number of legal professionals have voiced strong opposition to the Solicitors Regulation Authority’s (SRA) proposed plans to drastically increase its fining powers. Several prominent legal bodies, including the City of London Law Society, have already raised alarms, branding the proposals as unnecessary, confusing, and potentially unlawful. The Birmingham Law Society’s…
-
Conducting Litigation: Practical Steps for Compliance following the Mazur judgment
The Solicitors Regulation Authority (SRA) has provided guidance to help firms understand their obligations when it comes to conducting litigation. This is an area where confusion often arises, particularly around the distinction between supporting litigation and conducting litigation. Here’s what you need to know. Who Can Conduct Litigation? The SRA confirms that people who are…
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Updated SRA Guidance on High-Risk Third Countries
Historically, HRTCs were defined by the European Union. Following Brexit, the UK adopted its own list under Schedule 3ZA of the Money Laundering Regulations 2017 (MLR 2017). This changed on 22 January 2024, when the definition was updated to align with the Financial Action Task Force (FATF) lists: High-risk jurisdictions subject to a call for…
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Important changes to the Money Laundering Regulations 2017 – effective 18 November 2025
A small but significant pair of amendments have been introduced to strengthen the UK’s anti-money laundering framework. These changes were implemented via Schedule 2 of the ECCTA 2023 (Consequential, Incidental and Miscellaneous Provisions) Regulations 2025 and are now live here. What’s Changed? Regulation 28 Clarification has been added to confirm that the Register of Overseas…
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DAMLs and DATFs: What Law Firms Need to Know About Defence Requests
When handling client funds, you may encounter situations where continuing an activity could risk committing a money laundering or terrorist financing offence. In these cases, UK law allows you to request a defence—commonly known as “consent”—from the UK Financial Intelligence Unit (UKFIU). The full UKFIU guidance on DAMLs and DATFs can be found here. Here’s…
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Understanding SAR Guidance: What Every Law Firm Needs to Know
Submitting Suspicious Activity Reports (SARs) is a critical part of anti-money laundering (AML) compliance. The UK Financial Intelligence Unit (UKFIU), part of the National Crime Agency (NCA), is the only body authorised to receive SARs. Here’s what small firms need to know: The full UKFIU guidance on submitting a SAR can be found here. What…
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Registering for the SAR Portal: A Quick Guide for Busy Law Firms
If your firm handles anti-money laundering (AML) compliance, you’ll need to use the SAR Portal—the UKFIU’s secure platform for submitting Suspicious Activity Reports (SARs). It replaces the old SAR Online system, so even if you had an account before, you must register again. The full UKFIU guidance on using the SAR Portal can be found…
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SRA Update: Sanctions Information – 11 November 2025
The Solicitors Regulation Authority (SRA) has published important guidance on sanctions compliance in its latest update. This reinforces the need for firms to maintain robust systems and controls under the UK sanctions regime. Find the full guidance here. Key Messages from the SRA “Sanctions remain a key regulatory focus.” The SRA highlights that compliance with…
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Mastering Source of Funds and Wealth Compliance
The Solicitors Regulation Authority (SRA) recently published a thematic review on source of funds and wealth compliance, highlighting key challenges and best practices for firms. For small law firms, where resources are often stretched, understanding these requirements is essential to avoid regulatory breaches and maintain client trust. Why This Matters Money laundering risks are a…
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SRA Anti-Money Laundering Annual Report 2024–25: Key Insights
The Solicitors Regulation Authority (SRA) has published its AML Annual Report for 2024–25, highlighting progress, challenges, and priorities in tackling money laundering within the legal sector. This year’s report underscores the SRA’s commitment to proactive regulation and risk-based supervision. The full report can be found here. Headline Findings Proactive Regulation and Increased Oversight The SRA…
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Navigating AML and CTF Regulatory Changes
The regulatory landscape for Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) is undergoing a significant transformation. The UK government has announced plans to unify the regulation of AML and CTF under the Financial Conduct Authority (FCA), with the Solicitors Regulation Authority (SRA) managing the transition while continuing its current oversight. FCA Regulation Unification Plan The…
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SRA responds to Mazur Case
Following the High Court’s decision in Mazur v Charles Russell Speechlys, the Solicitors Regulation Authority (SRA) has now issued a formal statement, offering much-needed clarification for legal professionals and firms navigating the implications of the ruling. SRA’s Key Message: No Change in Law and a timely reminder The SRA confirms that the judgment does not…
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Implications of the Mazur Case for litigants
In the recent High Court decision in Mazur v Charles Russell Speechlys, the defendants—acting in person—requested that the individual representing the claimants be replaced by a solicitor with a valid practicing certificate. Although the court initially imposed a stay, it was later lifted, and a costs order was made against the defendants. They appealed, arguing…
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Navigating SRA Accounts Rules: Key Insights from Hazlewoods’ 2024 Audit Round-Up
As law firms continue to navigate the complexities of client money compliance, Hazlewoods — a leading firm of business advisers and accountants — has released its annual SRA Accounts Rules audit round-up for the 2024 calendar year. With over 150 Accountant’s Reports signed off annually, Hazlewoods offers a valuable lens into the most common breaches,…
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A Fresh Look at Suspicious Activity Reporting
Suspicious activity reporting isn’t just a regulatory checkbox—it’s a vital part of protecting your firm and the wider financial system. In Update 143, the Solicitors Regulation Authority (SRA) has placed renewed emphasis on the importance of high-quality Suspicious Activity Reports (SARs), offering practical tools to help firms improve their approach. For law firms, this update…
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Intelligence Sharing and AML: What Law Firms Need to Know from the SRA Update 143
In the fight against financial crime, small law firms play a crucial frontline role. The Solicitors Regulation Authority (SRA) has reinforced this responsibility in its Update 143, published in September 2025, which outlines new measures to strengthen intelligence sharing across the legal sector. These developments are particularly relevant for small firms, which may not have…
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Strengthening Your Defences: SRA Guidance Update 143 – 10 September 2025
In an era of increasing financial crime sophistication, small law firms must remain vigilant and proactive in their anti-money laundering (AML) efforts. The Solicitors Regulation Authority (SRA) has recently updated its sectoral risk assessment following the UK Government’s latest National Risk Assessment (NRA), and the implications are significant—especially for smaller practices that may lack the…
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Failure to Prevent Fraud Offence Comes into Effect on 1 September 2025
As of 1 September 2025, the UK’s new Failure to Prevent Fraud offence is officially in force. Introduced under the Economic Crime and Corporate Transparency Act 2023, this landmark legislation creates a corporate criminal offence that holds large organisations liable for fraud committed by employees, agents, subsidiaries, or other “associated persons”—unless they can demonstrate that…
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MLRs Consultation Response – 6 August 2025
On 6 August 2025, HM Treasury published its long-awaited response to the 2024 consultation on the Money Laundering Regulations (MLRs). The proposed amendments aim to streamline AML compliance, reduce unnecessary regulatory burdens, and enhance the overall effectiveness of the UK’s AML framework [1]. For small law firms and sole practitioners, these changes are particularly relevant.…
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UK National Risk Assessment – 17 July 2025
On 17 July 2025, the UK Home Office and HM Treasury published the latest National Risk Assessment (NRA) on Money Laundering and Terrorist Financing [1] [2]. This comprehensive report outlines the evolving threats to the UK’s financial system and highlights the sectors most vulnerable to abuse—including the legal profession. For small law firms and sole…
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OFSI Launches Online Forms
On 17 July 2025, the Office of Financial Sanctions Implementation (OFSI) launched a suite of new online forms designed to streamline the process of licence applications, sanctions breach reporting, and other key compliance activities [1]. This marks a significant step in modernising how legal professionals interact with OFSI and manage their financial sanctions obligations. For…
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POCA Thresholds Increased
On 10 July 2025, the UK government made a significant change to the Proceeds of Crime Act 2002 (POCA) by increasing the threshold for two key exemptions from £1,000 to £3,000. The change, enacted through the Proceeds of Crime (Money Laundering) (Threshold Amount) (Amendment) Order 2025, came into force on 31 July 2025 [1]. This…
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Understanding the FATF Grey and Black Lists – 13 June 2025 Update
On 13 June 2025, the Financial Action Task Force (FATF) released its latest update on jurisdictions under increased monitoring (commonly referred to as the grey list) and those subject to a call for action (the black list) [1] [2]. These lists are critical tools for identifying countries with strategic deficiencies in their anti-money laundering (AML)…
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Sanctions Compliance Risks: What SRA OFSI Findings Means for Law Firms
On 4 June 2025, the Solicitors Regulation Authority (SRA) issued Update 140, highlighting the findings of the Office of Financial Sanctions Implementation (OFSI) in its first-ever Legal Services Threat Assessment [1]. The report outlines the key sanctions compliance risks facing the legal sector and urges firms—especially those in high-risk areas—to take immediate action. For small…
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SRA ECCTA Fining Regime Reforms – 12 May 2025
In May 2025, the Solicitors Regulation Authority (SRA) announced significant reforms to its fining regime, marking a new chapter in how financial penalties are applied across the legal profession. These changes follow the enactment of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), which came into force in March 2024 and granted the SRA…
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SRA’s 2025/26 Business Plan – Strengthening AML and Ethical Standards – 8 May 2025
On 8 May 2025, the Solicitors Regulation Authority (SRA) published its 2025/26 Business Plan, setting out its strategic priorities for the final year of its current Corporate Strategy (2023–2026). Against a backdrop of rising regulatory risks, increasing misconduct investigations, and evolving threats in the legal sector, the SRA is sharpening its focus on anti-money laundering…
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SRA Approves First AI-Only Law Firm – 6 May 2025
In a landmark move that could reshape the legal landscape, the Solicitors Regulation Authority (SRA) approved the UK’s first AI-only law firm, Garfield.Law Ltd, in May 2025 [1]. This decision marks a pivotal moment in the evolution of legal services, especially for small law firms and sole practitioners who may be wondering what this means…
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SFO Guidance on Deferred Prosecution Agreements (DPAs) – 24 April 2025
On 24 April 2025, the Serious Fraud Office (SFO) released updated guidance aimed at helping businesses—including small law firms—understand how to raise concerns about suspected fraud or corruption and how to engage with the SFO when wrongdoing is identified. Why This Matters for Small Firms Small law firms may find themselves advising corporate clients or…
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What Law Firms Need to Know About ECCTA 2023 and Companies House Reforms in April 2025
The Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023) marks a significant shift in the UK’s approach to tackling financial crime. Gradually implemented since 2024, ECCTA aims to strengthen transparency, disrupt economic crime, and modernise the UK’s corporate framework [1]. Key Objectives of ECCTA 2023 Improve transparency of UK companies and legal entities Empower…
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Key LSAG AML Guidance Updates – April 2025
On 23 April 2025, the Legal Sector Affinity Group (LSAG) released a significant update to its Anti-Money Laundering (AML) Guidance, approved by HM Treasury. This update replaces the March 2023 guidance and the December 2023 addendum, and is now the authoritative source for AML compliance across the legal sector [1]. For small law firms and…
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HRTCs List Update – 21 February 2025
The Financial Action Task Force (FATF) has released its updated list of High-Risk Third Countries (HRTCs) as of 21 February 2025, identifying jurisdictions with strategic deficiencies in their AML/CFT frameworks. For small law firms, this update is a critical reminder to apply Enhanced Due Diligence (EDD) and ongoing monitoring when dealing with clients or transactions…
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SRA Open Consultation on Residual Balances in 14 November 2024
While some firms have improved their procedures in response to SRA Guidance and advice, many still struggle to comply with the rules governing residual balances. Failure to address residual balances can result in significant consequences, such as reputational damage, business disruption, and increased professional indemnity insurance (PII) premiums. What are Residual Balances? Residual balances occur…
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The Highest AML Fine by the SRA was £24,540 in 2024
The Solicitors Regulation Authority (SRA) has recently imposed significant fines on multiple law firms for breaches of anti-money laundering (AML) regulations, with the highest fine reaching £24,540. A common failing among these firms was the absence of a firm-wide risk assessment (FWRA), along with inadequate policies, controls, and procedures (PCPs) to prevent money laundering and…
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The SRA Warns over Sham-Litigation
The Solicitors Regulation Authority (SRA) has warned law firms about sham litigation, a tactic criminals use to bypass anti-money laundering (AML) rules by disguising illicit funds as legitimate legal disputes. In new guidance published by the SRA in January 2025, the regulator highlighted the case of fraudster Narinder Kaur, who manipulated multiple firms into pursuing…
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London Firm Fined for Residual Balances, Source of Funds Checks and Non-Compliances in AML
A London-based law firm and its director have been fined £25,000 each – totalling £50,000 – for serious compliance failures, including breaches of the SRA Accounting Rules and anti-money laundering (AML) deficiencies. The Solicitors Disciplinary Tribunal (SDT) found that the director falsely claimed that the firm had implemented a Practice-Wide Risk Assessment (PWRA). An investigation…
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AML Guidance Note from the SRA regarding Firm-Wide Risk Assessments – Updated December 2024
Anti-money laundering (AML) compliance is not optional—it’s a legal obligation. For small law firms and sole practitioners, understanding and implementing a Firm-Wide Risk Assessment (FWRA) is essential to meet the requirements of the Money Laundering Regulations 2017 (MLRs) and avoid regulatory breaches. Why This Guidance Matters The SRA’s AML Guidance Note makes it clear: while…
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SRA Faces Enforcement Over Mishandling of Axiom Ince
According to an article by the Law Gazette, the Solicitors Regulation Authority (SRA) faces historic enforcement action by the Legal Services Board (LSB) following its mishandling of the 2023 collapse of law firm Axiom Ince. An independent review found the SRA’s actions were inadequate and ineffective, with failures in oversight leading to the loss of…
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SDT Budget Set to Rise by 25% Amid Surge in Disciplinary Cases
According to Legal Futures, the Solicitors Disciplinary Tribunal (SDT) is set for a 25% budget increase in 2025, rising from £2.5 million to £3.1 million, in response to a spike in cases referred by the Solicitors Regulation Authority (SRA). This funding boost, sourced from practising fees paid by solicitors, will support an expected 300 sitting…
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Family Lawyers can face Criminal Liability
The World Uyghur Congress Case Court of Appeal June 2024 Family lawyers need to be aware of the risk of unintentionally receiving criminal property as payment for legal fees, particularly after the judgement handed down in June 2024 in the Court of Appeal decision in R (World Uyghur Congress) v National Crime Agency [2024] EWCA…
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Officers Uncover £55 Million Laundered through Chinese Underground Banking Channels in the UK
The Metropolitan Police released an article in August 2024, detailing a successful persecution of seven members of a criminal Chinese underground banking group by British police forces. Following an operation that spanned more than three years, a money laundering network operating through Chinese underground banking channels has been dismantled. The group, which laundered over £55…
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Lawyers Condemn the SRA’s Increased Fining Powers
In September 2024, a growing number of legal professionals have voiced strong opposition to the Solicitors Regulation Authority’s (SRA) proposed plans to drastically increase its fining powers. Several prominent legal bodies, including the City of London Law Society, have already raised alarms, branding the proposals as unnecessary, confusing, and potentially unlawful. The Birmingham Law Society’s…
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