About CQS Conveyancing

The surge in conveyancing activity due to the imminent ending of the Stamp Duty Holiday has placed significant pressure on law firms to maintain rigorous Anti-Money Laundering (AML) compliance standards. The urgency to expedite transactions may well have lead to shortcuts in due diligence processes. Financial criminals often exploit such high-pressure periods, making it imperative for firms to adhere strictly to AML policies protocols . The increased market activity may result in a higher incidence of incomplete transactions. For instance, in Q3 of 2024, there were approximately 84,079 abortive transactions, the highest since 2022. This trend underscores the need for law firms to manage risks meticulously and avoid overlooking potential red flags. Firms should be acutely aware that the Solicitors Regulation Authority (SRA) is likely to ramp up auditing activity post-April 1, cynically knowing that many law firms may have turned a blind eye to client matter risk assessments in th...

 A UK-based law firm has been fined £5,215 by the Solicitors Regulation Authority (SRA) for breaches of the Money Laundering Regulations 2017, SRA Accounts Rules, SRA Principles 2019, and the SRA Code of Conduct for Firms 2019. Additionally, the firm must pay £1,350 towards the costs of the investigation. Key Compliance Failures The SRA's investigation uncovered multiple compliance failures, including: Delayed Appointment of Compliance Officers: The firm failed to promptly appoint a Money Laundering Reporting Officer (MLRO) and did not seek the SRA's approval for a beneficial owner, officer, or manager (BOOM) in a timely manner. Lack of a Risk Assessment: There was no documented firm-wide risk assessment (FWRA) for a significant period, a fundamental requirement under AML regulations. Missing AML Policies and Procedures: The firm lacked adequate AML policies, controls, and procedures (PCPs) to mitigate money laundering and terrorist financing risks effectively. Inadequate Du...

The Solicitors Regulation Authority plays a crucial role in ensuring that legal professionals uphold the highest standards of conduct, particularly in relation to anti-money laundering (AML) compliance. I am seeing an increasing amount of outcomes letters after a SRA AML Audit advising firms that they are appointing the Investigations team to take over. The dreaded wording reads something like this: "For this reason, I have referred the matter to our AML Investigation team for formal investigation. I would urge you to address these concerns immediately." If a law firm is referred to the SRA AML Investigation Team, it signifies that potential breaches of AML regulations have been identified, and the firm is now subject to a thorough examination. But what does this actually mean, and what are the implications for the firm? Why Might a Firm Be Referred? A firm may be referred to the SRA AML Investigation Team for several reasons, including: Failure to Impl...

If you run a law firm, you already know that AML compliance isn't optional—it's a regulatory necessity. But here’s the real question: When was the last time your firm had an independent AML audit? With the Solicitors Regulation Authority (SRA) cracking down on AML compliance and the Legal Sector Affinity Group (LSAG) tightening its guidelines, law firms can no longer afford to overlook independent AML audits. The reality is simple: if you haven’t had an independent AML audit recently, your firm could already be at risk. What Is an Independent AML Audit, and Why Does Your Firm Need One? An independent AML audit is a critical review of your firm’s anti-money laundering policies, risk assessments, controls, and procedures. The key word here is independent—meaning it must be conducted by someone outside your AML compliance team. Why is this so important? Because the SRA expects law firms to take AML compliance seriously, and that means ensuring your...