"With nearly three-quarters of legal SARs originating from conveyancing, it's evident that law firms are operating in a high-risk environment"
- Tim Barnett - Credas Technologies
The Solicitors Regulation Authority has found that 73% of all Suspicious Activity Reports submitted by law firms relate to conveyancing transactions, highlighting the sector's significant exposure to financial crime risks.
The regulatory body's Anti-Money Laundering Annual Report 2024-25 identifies multiple threats facing conveyancing firms. These include vendor impersonation fraud, funds from high-risk jurisdictions, and transactions characterised by excessive complexity and opacity. When firms fail to conduct adequate due diligence, they risk missing SAR reporting obligations, which can lead to regulatory action and financial penalties.
"The SRA's findings make clear that property transactions remain a focal point for money laundering activity in the UK," said Tim Barnett, chief executive officer of Credas Technologies. "With nearly three-quarters of legal SARs originating from conveyancing, it's evident that law firms are operating in a high-risk environment. Robust digital identity verification and compliance processes are no longer optional - they're essential safeguards for firms and their clients."
The Financial Conduct Authority will assume responsibility for anti-money laundering compliance supervision in legal services, taking over from the SRA. This transition forms part of broader government reforms aimed at centralising oversight across professional services. The restructure is expected to deliver stricter and more uniform AML supervision, potentially creating a more demanding compliance environment for law firms and conveyancers.
Barnett notes that the regulatory changes present an opportunity rather than simply a burden. "As regulatory oversight evolves, property professionals across the transaction chain - from estate agents to conveyancers - should view this as an opportunity to strengthen their compliance frameworks," he explained. "Digital verification technology can help firms conduct more thorough due diligence, improve transaction oversight, and reduce the risk of errors that could lead to regulatory consequences. The tools exist to make compliance more efficient and more effective."
