About CQS Conveyancing

The Solicitors Regulation Authority continues its aggressive crackdown on financial crime with a recent fine issued against Whiteheads Solicitors (Staffordshire) Ltd . This decision serves as a stark reminder that the regulator is looking far beyond simple paperwork during an SRA aml audit . The firm was fined 2,584 GBP plus 600 GBP in costs following an investigation into its compliance with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. While the firm had a firm-wide risk assessment and general policies in place, the SRA identified critical failures at the matter level. Key compliance failures included: Failure to conduct adequate client and matter risk assessments . The SRA found a consistent pattern where the firm failed to sufficiently assess client matter risk levels as required by Regulation 28. Inadequate scrutiny of source of funds . In one specific property transaction, the firm failed to properly investigate the origin of funds provided by ...

For years, law firms prepared for AML scrutiny with one regulator in mind: the SRA. That era is over. The UK Government has confirmed a fundamental shift in supervision. AML and counter-terrorist financing oversight is moving from the SRA to the Financial Conduct Authority (FCA). This is not a cosmetic change. It is a full regulatory reset. If your firm is still thinking in terms of an internal review, an FCA AML audit will feel very different, financially, operationally, and reputationally. What Makes an FCA AML Audit Different The SRA regulates professional standards. The FCA enforces financial crime controls. That distinction matters. An FCA AML audit is not designed to guide or educate. It is designed to assess risk to the financial system and determine whether enforcement action is required. This is precisely why firms can no longer rely on internal reviews alone. An FCA AML audit will expect to see independent challenge, most ...

In the world of AML compliance, there is a significant difference between doing your work and proving that your work is effective. Anti-Money Laundering (AML) compliance is no longer a "set it and forget it" task. For firms regulated under the Money Laundering Regulations (MLR 2017), the requirement for an independent AML audit is a critical hurdle. But a common question persists among MLROs and Compliance Officers: How often do we actually need to do this? 1. The Regulatory Starting Point: "When Appropriate" The law (specifically Regulation 21 of the MLR 2017) states that a relevant person must establish an independent audit function "where appropriate, with regard to the size and nature of its business." While the legislation doesn’t give a hard calendar date, the consensus among regulators—including the SRA and the Legal Sector Affinity Group (LSAG)—is that for most firms, an audit should be conducted at least every 2 yea...

The first half of December 2025 sent a blunt warning to the legal profession: the SRA will not accept poor AML compliance. A number of enforcement actions has resulted in thousands of pounds in fines for technical failings. In short, you don’t have to launder cash to be penalised—poor record-keeping will do the job. The Case Files: December Enforcement West Yorkshire (Mirfield) | Published: Dec 1, 2025. The firm was fined £6,236 for a seven-year gap in Firm-Wide Risk Assessments . The SRA cited a persistent disregard for statutory obligations, noting the firm failed to maintain compliant AML policies since 2017. Manchester (Swinton) | Published: Dec 10, 2025. The practice was fined £19,013 following an inspection that found systemic failures in internal AML controls. While the firm had AML policies on paper, they were not being applied effectively at the client matter risk assessment level. ...

During a desktop SRA AML audit the legal regulator help the practice to be non-compliant. This was due to the absence of a firmwide risk assessment and an updated AML policy and procedure , insufficient relevent staff training on AML, and the MLRO failing to have completed enhanced AML training. The SRA sent written notice, providing two weeks to rectify the mentioned deficiencies. Failure to do so would result in disciplinary measures and perhaps fines. Within the specified period, the law firm addressed the issues by submitting a compliant AML policy, an AML firmwide risk assessment , and PCPs as well as AML training for both the MLRO and relevant staff members.

The foundational document when is comes to AML compliance is the AML firm-wide risk assessment. It is often described as the keystone of money laundering compliance in a law firms. Once a well drafted AML firm-wide risk assessment (FWRA) is in place the remainder your AML policies and procedures, training and due diligence will flow from it. The Focus of the FWRA The Money Laundering Regulations 2017 sets out five key areas for the FWRA to focus on: Clients Geographic areas Products and services Transactions Delivery channels However, there are many other elements that need to be considered. Regulation 18A of the money laundering regulations also requires firms to identify the risk of proliferation financing. This can either be considered separately or within the AML firm-wide risk assessment. Further guidance on how to carry out a proliferation financing risk assessment can be found in the Legal Sector Affinity G...

It’s one thing to say you have a Mortgage and Property Fraud Prevention Policy; it’s another to have a document that actually works under pressure. If you are currently updating your firm’s manual to meet CQS requirements, you don’t need to reinvent the wheel. Below is a sample index of what a 'gold-standard' CQS Mortgage and Property Fraud Prevention Policy looks like. Use this as a checklist to identify gaps in your current procedures and ensure you’re hitting all the mandatory CPMS requirements Introduction Client Due Diligence Identity of the Client and Client's Circumstances Linked Transactions External Parties Identity of the Other Lawyers Financial Considerations Proceeds of Sale General Considerations ...