Expert Advice
Anti-Money Laundering and Counter-Terrorist Financing- Supervision Report 2024-25
What is it and what is the Government’s approach? The Money Laundering Regulations (MLRs) require HM Treasury (HMT) to publish an annual report on supervision activity using information requested from the 25 Anti-Money Laundering/ Counter Terrorism Financing (AML/CTF) supervisors. The latest report was published on 8/12/25. The report states that the government is determined to “sharpen our defences against illicit finance, preventing criminals and hostile actors from exploiting our financial system and thereby reinforcing the UK’s standing...
Client account interest – Government plans – another consultation!
Just when you thought you could put your consultation-response pen down, another one arrives with an even shorter deadline than the FCA AML supervision one which closed on Christmas Eve! This one is equally important to respond to given it proposes significant changes to the client account interest law firms can retain. Action The deadline for responding is 9th February (less than 5 weeks from publication!), so get your skates on if you have any thoughts on the impact this is likely to have on your firm. Real-world firm experiences of client...
Companies House – ID verification and ACSP regime
ID verification As we reported in our October Compliance Update (here), the Economic Crime and Corporate Transparency Act 2023 (ECCTA) gave new powers to Companies House with the aim of making them more of a gatekeeper against economic crime than a passive repository of company data. Since 18/11/25, directors and Persons with Significant Control (PSCs) have been required to verify their identity with Companies House before they can establish companies or file documents (in relation to new and existing companies). Why? The aim is to make...
SRA Compliance Officers: A Thematic Review
The Solicitors Regulation Authority (SRA)’s first thematic review of compliance officer roles (COLPs and COFAs) published on 11/12/25, highlights risks affecting firms’ compliance effectiveness. The review covered only 25 firms (out of 9,000), so findings may not fully represent the profession, but general themes and challenges emerged, which anyone who has ever worked in a law firm, particularly in a compliance role, is likely to be able to relate to. Key issues for compliance officers Time constraints, particularly where juggling other...
Compliance Update January 2026
A new year brings new momentum. In our Q1 2026 update, we share the latest SRA rules and guidance as we step into the year ahead. New/ updated rules and guidance from SRA SRA Anti-money laundering report 2024-25 The SRA’s latest AML Annual report (published on 30/10/25) provides a critical reminder that there is still a long way to go before law firms are fully compliant. Given the likely stricter regime law firms will face once AML supervision moves to the FCA, the recommendations in the report should not be ignored. ...
Mazur and the conduct of litigation – SRA’s updated guidance
The SRA updated its guidance on the implications of the Mazur judgment on the conduct of litigation on 11/12/25. The main changes to the guidance, which was originally published on 20/10/25, is the content in the section entitled “Supporting firms and solicitors and our approach to enforcement” (which previously simply referred to the SRA Ethics helpline), in which it seeks to clarify its stance on firms self-reporting for previous breaches looked at through the lens of Mazur and enforcement action going forwards. Whilst CILEx Regulation has...
FSCS Deposit protection limit increase
From 1/12/25 the Financial Services Compensation Scheme (FSCS) deposit protection rose to £120,000 (having previously been £85,000). This means that if you hold deposits or savings with a UK-authorised bank, building society or credit union and it goes out of business, FSCS can compensate you up to the new limit of £120,000 per eligible person, per authorised firm. FSCS also protects temporary high balances because of a ‘qualifying life event’ (such as the proceeds of a house sale, receiving an inheritance or a redundancy payment) for a...
Government consultation on FCA AML supervision powers
As we reported to clients in October, the Government dropped the shock announcement in the middle of the SRA’s Compliance Officer’s Conference in October that the SRA will lose its responsibility for AML supervision of solicitors, with the Financial Conduct Authority (FCA) becoming the Single Professional Services Supervisor (SPSS) for all law firms (as well as accountancy firms and trust & company services providers). There is still no formal timeline for the transition. We are being told by the government that it will “take a number of...
SRA Anti-money laundering report 2024-25
The SRA’s latest annual AML report was published on 30/10/25. It’s essential reading for all firms in scope of the Money Laundering Regulations (MLRs), particularly given the headline finding that almost a third of firms the SRA engaged with were not AML compliant, with another 54% being only partially compliant – and even those out of scope should read the sanctions sections. SRA proactive AML engagements (including onsite inspections, desk-based reviews and thematic reviews) rose to 935 this year (April 2024-April 2025), up from 545 last...
SRA Sanctions Compliance: What Law Firms Can Expect Next
The Solicitors Regulation Authority (SRA) is continuing to tighten its focus on sanctions compliance across the legal sector — and it recently announced the next steps firms should expect. On 11 November, following a review of the sanctions data gathered through its AML & Sanctions Questionnaire earlier in the year, the SRA confirmed that it will be taking several targeted actions in the months ahead. If you’re a law firm wondering what this means for you, here’s a quick breakdown. 1.Tailored Guidance Letters to 490 Firms Nearly 500 firms...