You’ve probably heard the saying “pressure makes diamonds” and if you’re working in residential or commercial property, you’re likely under more pressure than most. Tight deadlines, complex chains, and relentless client expectations come with the territory. You’ve been through the Stamp Duty headache already this year, so we know you’re recovering from that pressure, but with that pressure, slipping controls for your AML compliance is the last thing you want.
If you read the article in Today’s Conveyancer that listed four practices that were fined for failing to comply with anti-money laundering (AML) regulations, you will have taken a deep breath no doubt. The fined firms had breaches that went back a few years, which included inadequate risk assessments, failure to maintain proper policies, and lapses that could have facilitated illicit financial activities.
The conveyancing sector continues to be a prime target for money laundering activity. Property remains a high-risk area—whether it’s because of layered company structures, foreign beneficial owners, or murky sources of funds. With the SRA, HM Land Registry and the NCA all paying closer attention to what firms are doing behind the scenes, waiting for the pressure to hit before reviewing your compliance approach is a risky game.
Mind you, as lawyers and conveyancers, you are probably innately risk averse, which is a great thing when it comes to anti-money laundering policies, processes and controls!
You’re not the only one
If any of this is making you shift uncomfortably in your seat—trust me, you’re not alone. My colleagues and I speak to conveyancers across England and Wales who know their processes need tightening, but simply don’t have the time or internal resources to properly address them.
Since the Money Laundering Regulations 2017 (as amended) set out more detailed requirements for client due diligence, ongoing monitoring, and source of funds/wealth verification, it’s no wonder your MLRO might be struggling to sleep. Layer that with the SRA’s Code of Conduct and regulatory framework, and the reality is: compliance has never been more complex—or more essential.
- Money Laundering and Terrorist Financing (Amendment) Regulations 2019
- Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020
As specialists in outsourced AML we come across plenty of examples of where firms are failing; and given the number of fines the SRA are dishing out at the moment, we have been compiling a list of key points of failure we see on a regular basis.
1. A relevant, up-to-date firm-wide risk assessment (FWRA):
Is yours tailored to conveyancing risks, like high-volume transactions or overseas purchasers?
2. Strong procedures around beneficial ownership:
Are you going beyond the surface with company buyers or trust arrangements?
Transparency International has just published a report into opaque real estate ownership –
https://www.transparency.org/en/news/unveiling-opacity-in-real-estate-ownership-index – which discusses how easy it is to exploit loopholes, hide identities and invest in property.
3. Clarity on source of funds vs source of wealth:
Can your team confidently explain what’s required, when, and why? Are they carefully checking bank statements for unusual receipts, third party payments, cash? Regulators read them when auditing, and a common pitfall where potential red flags haven’t been followed up on.
4. Real-world AML training:
Do your fee earners understand red flags in property transactions—not just in theory, but in the files in front of them?
5. Ongoing monitoring built into your workflow:
Is your AML review a one-and-done at onboarding—or are you checking for risk as the matter progresses?
6. Internal file reviews or audits:
How do you quality-check your compliance process? Is it all down to one MLRO, or are there broader checks in place?
The bottom line? Get ahead of the pressure
Pressure can absolutely drive results—but only if you’ve laid the foundations first. In AML terms, that means systems, processes, and a culture that spots risk before it becomes a problem.
And here’s the thing, proactive compliance doesn’t just protect your firm. It also protects your clients, your staff, and your reputation. You won’t get that when you’re firefighting.
Simon Harbord is Head of Consulting and Auditing at Teal Compliance
