AML in 2025: What conveyancers should look out for
Published
Harriet Holmes
AML Services Manager
As we enter 2025, the anti-money laundering (AML) landscape continues to evolve at an unprecedented pace, presenting both challenges and opportunities for conveyancing firms. Staying ahead of these changes has never been more critical. Below I outline some key developments that will shape AML compliance in 2025.
Increased Regulatory Scrutiny
The Solicitors Regulation Authority (SRA) has significantly intensified its oversight activities. The numbers tell a compelling story: in 2024, file reviews more than doubled to 3,048 (up from 1,245), and proactive engagements nearly doubled as well. With increased resources allocated for 2025, firms should prepare for even more rigorous supervision.
A proactive engagement refers to the SRA actively reaching out to law firms and solicitors to assess potential risks or compliance issues before problems arise, rather than waiting for complaints or concerns to be raised. Essentially, taking a preventative approach to regulating the legal profession by proactively engaging with firms to ensure they are adhering to ethical and professional standards. This can include issuing guidance, sending letters of engagement, implementing a compliance plan, or referring for investigation after an inspection.
Focus on Source of Funds and Wealth
A crucial development is the SRA's upcoming thematic review focusing on source of funds and source of wealth verification. This targeted scrutiny will likely result in new guidance and potential warning notices, requiring firms to enhance their due diligence processes.
Regulatory Evolution and Government Priorities
Updates to The Money Laundering Regulations (MLRs) are being considered in order to make the regulations more effective at tackling economic crime. In 2024, a consultation on improving the effectiveness of the MLRs explored ways to minimise burdens on legitimate customers, though we haven't yet seen its outcomes.
Despite a recent change in government causing some delays, both the Conservative and Labour parties maintain strong alignment on economic crime. Money laundering continues to be a critical focus at the highest levels of government, as demonstrated by the Security Minister's recent address at the UK Finance Economic Crime Congress outlining the government's strategy to detect, disrupt, and defeat economic crime.
A new national risk assessment is expected, which will trigger updates to sector-specific risk assessments.
Additionally, we anticipate updates on reforming the UK AML supervisory system, following commitments made in the Economic Crime Plan 2023-6.
Staying Ahead: Best Practices for Conveyancers
To navigate these challenges effectively, conveyancers should:
Maintain active engagement with regulatory bodies and professional associations.
Invest in regular staff training and development.
Leverage technology solutions for enhanced compliance efficiency.
Participate in professional networks for knowledge-sharing.
Build a reliable network of trusted advisors for guidance and support.
Looking Forward
Success in 2025's AML landscape will require a proactive approach to compliance. By staying informed of regulatory changes and implementing robust AML processes, conveyancers can protect themselves and their firms while serving their clients effectively. The key is to view compliance not as a burden, but as an opportunity to strengthen your firm's reputation and competitive advantage.
Subscribe to our newsletter
Subscribe to our monthly newsletter for recaps and recordings of our webinars, invitations for upcoming events and curated industry news. We’ll also send our guide to Digital ID Verification as a welcome gift.
Our Privacy Policy sets out how the personal data collected from you will be processed by us.
