AML compliance is about more than completing client matter risk assessments. This article explores the “Compliance Waterfall” and explains why national, sectoral and firm-wide risk assessments should underpin every decision, helping law firms build stronger, more consistent compliance frameworks.
Is quantum computing the future of anti-money laundering? While banks explore advanced technology, law firms can already prevent financial crime by strengthening onboarding, risk assessment, and ongoing monitoring processes.
New 2026 guidance confirms that digital identity verification can meet MLR requirements, but only where providers are certified under the UK trust framework. Law firms must now reassess their IDV solutions to ensure compliance with stricter regulatory standards.
The UK legal sector faces tighter AML oversight in 2025–26, with conveyancing remaining high risk. Regulatory reform, stronger supervision, and the move toward certified digital identity aim to improve customer due diligence, reduce ambiguity, and support reusable, digitally enabled compliance.
The UK Government is set to overhaul its AML framework by creating a Single Professional Services Supervisor, shifting all AML oversight for legal and professional services to the FCA and replacing the current patchwork of 22 supervisors. While the change aims to improve consistency and intelligence sharing, it has sparked concern over dual regulation, higher costs, and whether a single regulator can meet the legal sector’s specific needs. A follow-up consultation is now underway, leaving firms facing ongoing uncertainty.
Rising regulatory pressures and client expectations are pushing law firms to modernise. Digital tools like IDV and AML platforms can streamline compliance, cut duplication, and turn a regulatory burden into a strategic advantage.
Jonathan Bennett of Credas discusses best practices for transitioning to fully digital onboarding. In his short guide Bennett highlights digital tools for AML and CDD, from ID verification to source of funds checks, and offers advice on evaluating solutions, engaging stakeholders, and ensuring a seamless transition to a more efficient and compliant digital-first approach.
In this article from Jonathan Bennett at Credas he provides key insights on the SRA’s latest AML report, which reveals a 66% rise in enforcement actions and over £500,000 in fines. He provides commentary about compliance missteps, including ignored AML alerts and mishandled client funds, and understand how recent reforms impact law firms.
This article is a taster from our legal supplier Credas of their upcoming webinar in January, you will discover the key compliance and onboarding challenges shaping the legal sector in 2025. From stricter AML regulations to AI-driven ID fraud, explore strategies to stay ahead in this evolving landscape.
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