Jonathan Bennett
As we approach 2025, the legal sector faces increasing regulatory scrutiny, particularly in compliance and onboarding practices. In 2024, record fines were issued for compliance breaches, with regulators signalling a much stricter regime ahead.
According to the latest SRA report, while compliance levels have improved year-on-year, less than a quarter of firms are fully compliant. Law firms, especially in the property sector, must prioritise meeting AML obligations or risk significant financial penalties as well as reputational damage.
So what does the regulatory landscape look like heading into 2025?
As compliance levels increase, criminals in response are finding more and more complex methods to try an avoid detection. Some of the key factors that law firms should consider is the rising risk of AI and ID verification. Modern AI powered tools are allowing criminals to easily create highly convincing ID documents which can easily convince the human eye.
Source of Funds and Source of Wealth remain a critical focus for regulators such as the SRA and CLC, particularly in property transactions. Despite their importance, SoF and SoW checks are often complex and misunderstood. Modern compliance tools can simplify these processes by automatically analysing data and flagging high-risk factors.
Upcoming Webinar: Staying Ahead – Compliance and Onboarding Trends Shaping Legal Practices in 2025
Join us on Thursday, 16th January 2025, at 1:00 – 1:30 PM for an insightful webinar where we’ll explore these trends and provide actionable strategies to stay ahead of the curve.
Hosted in partnership with Chronicle Law and compliance experts Arête Legal, this session will offer practical guidance grounded in real-life examples of high-risk transactions.
Key Speakers:
- Rhian Del-Valle, Director of Enterprise Partnerships, Credas
- Kim Rawlings-Smith, Director, Arête Legal
- Zain Maqsood, Associate Director, Arête Legal
About Arete Legal
Arête Legal provides specialised compliance solutions tailored to the unique needs of law firms, ensuring they meet regulatory standards seamlessly while minimising risk and maximising operational efficiency.
About Credas
Credas are a market-leading provider of ID verification and anti-money laundering searches. Our software is used by hundreds of thousands of people every month to verify their ID, giving us a unique insight into the market. Click here to view their supplier profile on our website.
Register for our upcoming webinar
If you’d like to learn more about compliance and onboarding trends that are set to shape Legal Practices in 2025 then register for our webinar www.credas.com/legalcompliancetrends2025