About CQS Conveyancing

For a sole practitioner or the MLRO in a small high-street firm, "AML compliance" often feels like just another mountain of paperwork standing between you and your actual work. When you are juggling a heavy conveyancing caseload, a sensitive probate matter, and the day-to-day survival of your practice, the last thing you need is a new regulator with a reputation for being data-heavy and "zero-tolerance." But the ground is shifting. As the Financial Conduct Authority (FCA) takes over AML supervision from the SRA, the "high-street way" of doing things—relying on long-standing local reputations and gut instinct—is being replaced by a requirement for hard, documented proof. The end of "I’ve known them for years" In a small town, you often act for the same families for generations. You know their business, their parents, and their reputation. Under the old mindset, that felt like enough. Under the FCA, it isn’t. T...

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 ...

The regulatory honeymoon is well and truly over. As we move to 2026, the SRA Sanctions Audit has evolved from a peripheral compliance check into a central pillar of legal supervision. Firms still treating sanctions as a minor subset of AML are now finding themselves directly in the crosshairs of the Solicitors Regulation Authority. While the industry anticipates a potential migration of AML supervision to the FCA, the current focus remains squarely on the SRA Sanctions Audit. The regulator has doubled down on its remit, initiating a wave of desk-based reviews and deep-dive inspections. Whether you are a small firm or a global player, the SRA Sanctions Audit expectations for 2026 are non-negotiable. The 2026 Inspection Landscape The SRA Sanctions Audit roadmap is clear. Remote desk-based reviews are now targeting high-risk sectors, specifically firms involved in conveyancing, trust and company services, or those with international client links. These are not light-touch queries. A...

The only people, by law, who can deal with the legal aspects of conveyancing are solicitors and licensed conveyancers. If you have had poor service from your conveyancing solicitor or licensed conveyancer, and they haven’t dealt with your complaint satisfactorily, you can do the following: • In the case of a conveyancing solicitor, you can complain to the Legal Complaints Service (LCS). If it agrees with your complaint, the LCS can order your conveyancing solicitor to refund your fees or pay you compensation. If you are not happy with how the LCS handles your complaint, you can then take the complaint to the Legal Services Ombudsman. • For a licensed conveyancer, you can complain to the Council for Licensed Conveyancers who, like the LCS can order your conveyancing lawyer to refund your conveyancing fees or pay you compensation. If you suffer a financial loss as a result of negligence (i.e. the conveyancing solicitor or conveyancer didn’t do something they should have done, or did...

Hot on the heals of the Law Society looking into the question of referral fees, commissions by conveyancers to estate agents and mortgage brokers are to be examined by the Legal Services Consumer Panel. The Legal Services Consumer Panel will also look at other referral fees paid by lawyers to insurance and claims management companies.

This morning’s Times contains an article Solicitors Regulation Authority closes down law firm Wolstenholmes. The article reveals that five solicitors have been suspended after allegations of dishonesty involving hundreds of thousands of pounds of clients’ money. The Solicitors Regulation Authority has started an investigation into the activities of Cheshire-based Wolstenholmes, which was established in 1818 and carries out conveyancing in London , Manchester and Birmingham. Customers have bombarded the forums of websites such as Money Saving Expert with complaints about the way the company takes £300 as a deposit and then allegedly does not return calls. One client of the conveyancing firm has reportedly told the BBC that she had been left living in a caravan with her children. She claimed that the £445,000 she had transferred to Wolstenholmes, nearly half of which was her own money, had been frozen.

In Daejan Investments Ltd v Benson and others [2009] UKUT 233 (LC), the Freeholder/landlord who owned a block of shops and flats gave notice to the leaseholders of the flats that it intended to carry out major works amounting to £270,000. The landlord failed to comply with the statutory service charge consultation requirements leading to a service charge dispute. The Leasehold Valuation Tribunal (LVT) refused to grant a dispensation from compliance. This net result of the decision was that the service charge liability of the five leasehold owners was limited to £250 each. At appeal, the Lands Chamber of the Upper Tribunal agreed with the Leasehold Valuation Tribunal that it could not take into account the disproportionate financial consequences for the landlord when deciding whether or not to make an order for dispensation: the statutory consequences of the failure to comply were an intrinsic part of the law relating to service charges, and there to be followed. This decision should ...

Adopting some of the latest IT, the Land Registry has recently combined its data with the Environment Agency's flood data to produce its new Flood Risk Indicator. Homebuyers can use the Flood Risk Indicator to access clear and reliable information about the possible risk of flooding. Customers can purchase Flood Risk Indicator on-line via the Land Registry website. After inputting address details, home buyers will receive a Flood Risk Indicator result in a couple of minutes – stating whether a specific area of land is likely to experience flooding. Customers can instantly download their result, which indicates whether or not their property is affected by a flood plain. This will assist in being able to obtain building insurance. Time will tell whether mortgage lenders will require this search to become a compulsory search within the conveyancing process. Flood Risk Indicator raises customers' awareness of flooding, and helps them plan and prepare as a result of being better ...

BDO, has come up with some frightening figures on mortgage fraud, against a backdrop of soaring UK losses to fraud in 2009 (over £2 billion) across all sectors. It predicts worse to come. In 2009, mortgage fraud accounted for 18% of all reported fraud and 27% of fraud in the UK finance and insurance sector. Simon Bevan of BDO commented rather frankly: “It may have become more difficult for the person on the street to secure a mortgage in the UK, but the mortgage fraud industry is booming!” Mortgage fraud often works through a large loan being taken out on an overvalued property with a corrupt buyer, valuer and/or conveyancing lawyer working in collusion. The same group will then apply the scam to a portfolio of properties, meaning that the fraud can escalate to large amount. BDO warns of “a tidal wave” of fraudulent borrowing that has only just beginning to appear, particularly through the use of over-valued properties as security for mortgages . Worryingly, he suggests many of these f...

The CML in recent report expressed it’s belief that fundamental reform of stamp duty is necessary. It states that it regards Stamp Duty as a tax that discourages labour mobility, and with it’s “ tier ” structure has the effect of causing transactions to “bunch” just under each of the tax thresholds. The CML state “ While abolition would be the best option, a move to a graduated structure would be an improvement on the current system, even if done on a cost-neutral basis. While the temporary concession was welcome as far as it went, it is disappointing that the government has not sought to implement this desirable reform of an anachronistic tax”.

The Land Registry Direct system will be ending on 31 March 2010. The technology platform on which it is rests will cease to be supported, meaning that conveyancing services in Land Registry Direct cannot be developed further. The new home for the Land Registry business e-services is the Land Registry Portal, which uses the most up-to-date online technology to provide conveyancers and the public with enhanced services. The Law Society , the CLC and the Land Registry are all encouraging conveyancing lawyers to sign up if they haven’t done so already. If conveyancers send in their application forms by 15 February 2010, then they will avoid the risk of losing access to their business e-services. If conveyancing firms require additional services such as Network Access Agreements and Lender Services, these are optional and can be applied for at a later date.

In the recent case of Morgan v Fletcher & others six leasehold owners (the "leaseholders") in a block containing of eight flats (the "block") applied to the LVT to vary retrospectively vary their leases. The leaseholders argued that the service charge clauses in the leases were " not satisfactory" under section 35 of the Landlord and Tenant Act 1987 (LTA 1987). At the time of their application the total of the service charge proportions of all the leases amounted to 116% of the landlord's expenditure. The landlord then went to vary the service charge provisions for the other two leasehold flats in the building, reducing the total service charge contributions for the building to 100% of the landlord's expenditure. The LVT( rather logically ) adjusted the leases of the leaseholders to make the service charge contributions proportionate. The freeholder appealed. The court allowed the appeal. It held that section 35 of the LTA 1987 was not inten...

According to the Financial Times today over 100 law firms suspected of mortgage fraud were investigated in 2009 as part of a crackdown on rogue solicitors resulting in increased interventions. The figures just released by the Solicitors Regulation Authority reveals that the completed 106 investigations into firms where there was suspected misconduct in relation to mortgages or property. Of these One Hundred and Six practices, 22 were permanently closed down. Twenty four cases have been referred to the police for investigation, and 30 cases have been referred by the SRA to the Solicitors Disciplinary Tribunal, which has the power to strike off solicitors. The FT comments “There has been concern about rising levels of property fraud with the SRA’s own figures showing an increase in reports of suspected property fraud involving solicitors up from 85 cases in 2005 to 400 in 2009.” In the 1980’s property fraudsters used corrupt or incompetent solicitors to help them carry out property fra...

In response to a question from Conservative MP David Amess on what methodology would be used to use to evaluate the effectiveness of the Home Information Pack programme, Communities and Local Government Minister Ian Austin was involved in heated argument. The wording of the debate ( reported in Hansard ) makes interesting reading, so I thought I would share it with you : Mr. David Amess (Southend, West) (Con): What methodology his Department plans to use to evaluate the effectiveness of the home information pack programme; and if he will make a statement. Mr. Andrew Mackay (Bracknell) (Con): What methodology his Department plans to use to evaluate the effectiveness of the home information pack programme; and if he will make a statement. Mr. David Jones (Clwyd, West) (Con): What methodology his Department plans to use to evaluate the effectiveness of the home information pack programme; and if he will make a statement. The Parliamentary Under-Secretary of State for Communities and Local...

Last week saw the second reading, in the House of Commons, of The Mortgage Repossessions (Tennant Protection ) Bill. The proposed legislation aims to give private tenants greater protection from repossession if their landlord defaults on the property mortgage. If passed it is believed that the Bill would close a legal loophole causing problems for at least 3,000 tenants a year. The Bill: - Gives courts the power to suspend (for up to two months ) the repossession of a property in cases where the mortgagee had rented it out without informing the mortgage lender - Requires the lender to give notice, at the property, of the proposed execution of the possession order. The Bill, which has cross party support, also has the backing of the three national landlord organisations as well as the Citizens Advice Bureau, Shelter and Crisis, and is likely to become law in the next few months. The most vociferous opponent to the Bill is the CML

Conveyancing Solicitors : Conveyancing Solicitors have expressed the disappointment that the OFT did not propose the regulation of estate agents in its home buying and selling. Commenting on the report Paul Marsh, Law Society property spokesman, said: ‘We’d have liked to see them recommend that regulation of estate agents was put in place to create a level playing field with solicitors, who are very heavily regulated.’ Strange that government deems that solicitors must be heavily regulated by independent bodies and cannot regulate themselves, despite the fact that satisfaction surveys say they do a good job. Estate Agents : Peter Bolton King, chief executive of the National Association of Estate Agents , added: ‘Once again the OFT has categorically failed to see that better regulation of the home buying and selling market is required… it is disappointing that the OFT has not thought it appropriate to acknowledge that a robust and appropriate level of consumer protection is needed.’ ‘T...

The Land Registry has announced that the changes to portal Business e-services which were scheduled for 6 September, have not been released. This has been due to an unexpected electricity failure. The much awaited changes will now be released on 13 September 2010. This includes the planned electronic delivery changes for portal Business e-conveyancing services transactions and application for Deputy Responsible Persons.

The SRA has confirmed that its 2026 AML thematic review will focus squarely on AML Policies , Controls and Procedures (PCPs) — and it’s not just another paperwork exercise. This latest review follows previous deep dives into firm-wide risk assessments , client matter risk assessments, and source of funds. But the regulator says a familiar problem keeps resurfacing: firms have AML manuals, yet those policies often fail to translate into day-to-day behaviour. In short, the SRA has identified a persistent disconnect between policy and practice. Why the SRA Is Turning the Spotlight on PCPs AML compliance has been a legal requirement for years — in some cases, decades. Yet supervisory work continues to reveal the same weaknesses: Processes exist, but aren’t followed 82% of firms referred for investigation had risk assessment processes in place; they simply were not being applied at client matter level. Policies frozen in time Some firms still lack mandator...

It’s official—or at least, the timeline is. Following the news of the acquisition late last year, Nationwide Building Society and Virgin Money have announced that they are aiming to fully integrate their businesses on April 2, 2026. For customers and observers of the UK banking landscape, this marks the beginning of a significant shift. Here is the breakdown of what is happening and what it means. What’s the Plan? While the two companies are already part of the same group, they currently operate as separate entities. The goal is a formal "Part VII transfer," a legal process that moves Virgin Money’s entire business under the Nationwide umbrella. The Key Date: April 2, 2026 (subject to court approval). The Legal Hurdle: A High Court hearing is scheduled for February 23, 2026, to give the final green light. The Process: If approved, the transfer happens automatically. You won't need to fill out new forms or move your own data. ...

The UK Finance Mortgage Lenders’ Handbook has long been the unsung hero of the property market. It is the definitive rulebook that keeps lenders and conveyancers on the same page, ensuring that billions of pounds in mortgage lending move securely through the legal system every year. However, for a long time, the way the proerty lawyers interact with that data has felt a bit like using a map from the 1990s to navigate a 2024 city. UK Finance’s recent announcement that they are modernizing the platform isn’t just a tech upgrade; it’s a necessary shift in how the industry handles vital information. Beyond the PDF Mindset The primary takeaway from the announcement is the move toward a platform designed around user research. In the past, navigating lender requirements could be a manual, time-consuming process. By involving developer expertise to create a "quick and simple" interface, UK Finance is acknowledging a hard truth: in a high-pressure property...

New changes to the Money Laundering Regulations 2017 took effect on 18 November, following the introduction of the Economic Crime and Corporate Transparency Act 2023. These amendments specifically impact how firms interact with the Register of Overseas Entities. Two key updates have been implemented: First, Regulation 28 has been clarified to confirm that the Register of Overseas Entities cannot be the sole source used to verify beneficial ownership. This change ensures the register is treated with the same level of scrutiny as the Companies House register, requiring firms to conduct further verification. Second, Regulation 30A now includes the Register of Overseas Entities within the discrepancy reporting regime. This means firms are now required to report any material inconsistencies they find between the information on the register and the information gathered during their own due diligence. Looking ahead, the Solicitors Regulation Authority has indicated that further amendm...

I have only just caught up with Lexsure’s e-ROT update for December. As with previous releases, the monthly precedent texts are clearly designed to help conveyancers give accurate, practical advice in response to a shifting legislative and risk landscape. The Renters’ Rights Act 2025: Action Required Now The Renters’ Rights Act 2025 is no longer something to plan for in theory; it is now law. While the headline tenancy reforms do not come into force until 1 May 2026, local authorities have already been granted new investigatory and enforcement powers, which became active in late December 2025. The new precedent text is aimed squarely at prospective landlords and highlights the three most significant changes they need to understand now: Abolition of Section 21: "No-fault" evictions will be removed. Transition to Periodic Tenancies:All fixed-term tenancies, whether new or existing, will tra...

Hello everyone, and thank you for joining today's session on the blog on the topic of FCA AML audits for lawyers. The Financial Conduct Authority (FCA) has issued a 44,078,500 pound Final Notice to Nationwide Building Society for systemic anti-money-laundering (AML) control failures between 2016 and 2021. While this enforcement action is aimed at a financial institution, it offers a clear warning signal for the legal sector as it moves toward direct FCA supervision. For law firms, this case should be viewed as a preview of the future of FCA AML audits and the standard the regulator is likely to apply once legal services fall fully within its AML oversight. What the Nationwide Case Reveals The FCA found that Nationwide’s AML framework failed in practice, not just in design. Core weaknesses included outdated customer risk assessments, ineffective ongoing monitoring, and transaction monitoring systems that were poorly calibrated to identify suspicious activit...

If you’re a partner or a compliance officer at a law firm, I want you to take a quick second and think about your last AML review. Was it a check the box exercise to keep the SRA happy? If the answer is yes, we need to have a serious chat. The regulatory landscape for solicitors is shifting fast . The Financial Conduct Authority (FCA) is stepping onto the field with a much more active role, and they play a much tougher game than we've seen in the past. Today, we’re breaking down why the FCA AML Audit is the new essential safeguard—and why "good enough" policies just won't cut it anymore. Why the "Old Way" of AML is Riskier Than Ever Historically, many of us approached AML compliance through a traditional SRA lens. But let’s be real: that approach is becoming a major liability. The FCA’s style is risk-based, evidence-focused, and—most importantly outcome-driven. They don’t just want to see your manual; they want to see your proof. ...

The Solicitors Regulation Authority (SRA) isn't sending Christmas cards this year. They're sending in the AML auditors. Despite the upcoming shift where the FCA will assume wider AML regulatory oversight, the Solicitors Regulation Authority (SRA) is turning up the heat one last time. Forget a gentle warning—welcome to the AML Blitz of December 2025 . Let’s cut to the chase. SRA Chief Executive Paul Philip is clearly done with excuses. His public message is unambiguous: "We are still finding fairly basic deficiencies in AML arrangements within firms." Translation for the Partners: You might effortlessly navigate a complex, multi-million-pound merger, but somehow, you still haven't nailed your fundamental firm-wide risk assessment. The era of the gentle wrist-slap is officially over. The SRA has made it clear that fines are "continually going up." AML Compliance is no longer a 'nice-to-have'—it’s an expensive, enforced reality...

The UK government has dropped a regulatory bombshell that will fundamentally reshape your life, and yes, we are talking about the dreaded FCA AML audit. For years, you’ve been supervised by your legal peers, the SRA, but those days of relative comfort are drawing to a close. The big news? Responsibility for Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) supervision for the legal and accountancy sectors is being handed over to the Financial Conduct Authority (FCA. That's right, the same folks who put the fear of God into the big banks are now coming for your conveyancing files. Cue the dramatic music. What does the FCA take-over actually mean? Forget the gentle nudge; prepare for the financial services full-body search. An FCA AML audit is likely to look a lot more like a detailed financial inspection and a lot less like a polite chat with the SRA. Think maximum emphasison: Ironclad AML documentation (no more "it's in my head" polici...

The article published earleir this year by The Negotiator highlights concerns from the Property Lawyers Alliance (PLA) regarding the perceived excessiveness of anti-money laundering (AML) regulations in the conveyancing sector, arguing that these controls are “choking” the homebuying process with red tape, delays, and financial While these frustrations are understandable, it is crucial to recognise the indispensable role that AML controls play in protecting the integrity of the UK property market, safeguarding clients, and upholding the legal profession's reputation. The Real Threat: Money Laundering in Property Transactions Real estate is globally recognised as a high-risk sector for money laundering. The high value and relative stability of property make it an attractive vehicle for criminals seeking to legitimize illicit funds. Without robust AML controls, the property market would be exposed to significant financial crime risks, undermining public trust and potentially fac...