https://radar.markreadfintech.com/en/event/6730fa87-65ec-409d-ba13-ca5cbc683d2f

Law firms in England and Wales can handle property purchases, company structures and client funds, making them potential conduits for illicit money. The Solicitors Regulation Authority (SRA) requires firms to assess money-laundering risks for both the client and the specific legal matter, then use that assessment to determine the level of due diligence. Screening software can help gather information, but a risk rating must reflect the circumstances of the transaction and the lawyer's documented judgment.

A September 23, 2026 report drew renewed attention to the SRA's 2024/25 anti-money laundering annual report, published on October 30, 2025. Of 5,873 files reviewed, 950, or 16%, lacked a client and matter risk assessment or contained an incomplete one. The regulator found 39% of the assessments it reviewed ineffective. It said firms should record why they assigned a risk rating, what due diligence it calls for and how identified risks will be mitigated.