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 dedicated compliance departments but are still expected to meet the same regulatory standards as larger practices.
This blog post breaks down the key points from the update and offers practical guidance for small law firms to stay compliant, informed, and proactive in their anti-money laundering (AML) efforts.
The Legal Sector’s Role in Combating Financial Crime
The SRA is working closely with the Legal Sector’s Intelligence Sharing Expert Working Group (ISEWG), a collaborative initiative established by the Office for Professional Body AML Supervision (OPBAS). The group includes professional body supervisors, statutory AML supervisors, and law enforcement agencies, all working together to detect, disrupt, and prevent money laundering and terrorist financing.
For small law firms, this means being part of a wider network that is actively sharing intelligence to protect the integrity of the legal profession and the financial system.
What’s New in Update 143?
1. Non-Public Alerts for MLROs
Starting from September 2025, the SRA will issue non-public alerts based on intelligence from the National Crime Agency (NCA). These alerts are designed to support frontline action and will be sent directly to Money Laundering Reporting Officers (MLROs).
To access these alerts, MLROs must log into their mySRA account, where the full details will be securely available. This system ensures that sensitive intelligence is shared responsibly and only with those who need it to take action.
2. Focus on Suspicious Activity Reporting (SAR)
The update encourages firms to revisit their approach to Suspicious Activity Reporting. SARs are a vital tool in identifying and preventing financial crime, and the SRA is urging MLROs to ensure they are confident and competent in submitting them.
The SRA has also published guidance for MLROs, which includes best practices and resources to help firms improve their reporting standards.
Why This Matters for Small Law Firms
Small law firms may not handle high volumes of complex financial transactions, but they are still vulnerable to being targeted by criminals seeking to exploit perceived gaps in compliance. The SRA’s update highlights the importance of intelligence sharing and vigilance, regardless of firm size.
Here’s why small firms should pay close attention:
- Limited resources can make it harder to detect sophisticated money laundering schemes.
- Less formalized compliance structures may lead to inconsistent reporting or oversight.
- Smaller client bases can create a false sense of security, leading to complacency.
By engaging with the SRA’s new intelligence-sharing framework, small firms can strengthen their defences and contribute meaningfully to the sector-wide effort to combat financial crime.
Practical Steps for Small Law Firms
To align with the SRA’s expectations and make the most of the new guidance, small law firms should consider the following actions:
1. Ensure MLROs Are Registered and Active
If your firm is within scope of the Money Laundering Regulations, you must appoint an MLRO. Make sure they are registered with the SRA and have access to their mySRA account to receive alerts.
2. Review SAR Procedures
Revisit your firm’s process for identifying and reporting suspicious activity. Ensure staff know how to escalate concerns and that the MLRO is equipped to submit high-quality SARs.
3. Use the SRA’s Guidance
The SRA has published resources specifically for MLROs. These include guidance on:
- What constitutes suspicious activity
- How to complete SARs effectively
- What happens after a SAR is submitted
Make these resources part of your firm’s AML training and compliance toolkit.
4. Train Your Team
Even in small firms, AML compliance is a shared responsibility. Provide regular training to all staff, including fee earners and support staff, on identifying red flags and understanding their role in the reporting process.
5. Stay Informed
Encourage your MLRO to engage with updates from the SRA and other regulatory bodies. Subscribe to newsletters, attend webinars, and participate in sector-wide discussions where possible.
Common Challenges for Small Firms—and How to Overcome Them
Challenge 1: Limited Time and Resources
Small firms often juggle multiple priorities, and AML compliance can feel like a burden. However, failing to comply can lead to serious consequences, including fines and reputational damage.
Solution: Use the SRA’s free resources and alerts to stay informed without needing to invest in expensive systems. Focus on building a culture of awareness and accountability.
Challenge 2: Unclear Reporting Lines
In smaller teams, roles may overlap, and it’s not always clear who should report what.
Solution: Clearly define the responsibilities of the MLRO and ensure all staff know how to escalate concerns. Create a simple flowchart or checklist to guide decision-making.
Challenge 3: Fear of Overreporting
Some firms worry about submitting SARs unnecessarily and attracting scrutiny.
Solution: The SRA and NCA emphasize that it’s better to report and be wrong than to miss a genuine threat. Use their guidance to improve the quality of your reports and reduce uncertainty.
Building a Culture of Compliance
Ultimately, the goal of the SRA’s intelligence-sharing initiative is to foster a culture of compliance across the legal sector. For small law firms, this means:
- Being proactive rather than reactive
- Empowering staff to speak up
- Using intelligence to inform decisions
- Collaborating with regulators and peers
By embracing these principles, small firms can protect themselves, their clients, and the wider financial system.
Final Thoughts
The SRA’s Update 143 is a clear signal that intelligence sharing and AML vigilance are top priorities for the legal sector. Small law firms may face unique challenges, but they also have the agility and close-knit teams needed to respond quickly and effectively.
Make sure your MLRO is ready to receive alerts, review your SAR procedures, and take advantage of the SRA’s guidance. In doing so, you’ll not only meet your regulatory obligations—you’ll also play a vital role in the fight against financial crime.
To read the full update and access the latest guidance, visit the SRA’s official page here.