SRA losing anti-money laundering powers is ‘wake up call’ for legal sector – SmartSearch
SmartSearch boss says compliance can no longer be treated as a ‘tick-box exercise’ and legal firms should expect greater scrutiny, higher expectations, and zero tolerance.
Responding to the news that the Solicitors Regulation Authority is to lose its anti-money laundering responsibilities, with supervision of law firms passed to City watchdog the Financial Conduct Authority, Phil Cotter, CEO of anti-money laundering and digital compliance specialist SmartSearch said it is a ‘wake up call’ to the sector and that the pressure to get compliance right ‘has never been greater’.
He said: “The FCA takeover of AML supervision is a wake-up call for the legal sector: compliance can no longer be treated as a tick-box exercise – it must be embedded, proactive, and risk-based. With over 6,000 firms and 23,000 individuals now moving under FCA oversight, the scale and complexity of this transition cannot be underestimated. Firms should expect greater scrutiny, higher expectations, and zero tolerance for gaps in compliance.
“It’s clear that the UK government is making the fight against financial crime a national priority. From the Economic Crime and Corporate Transparency Act (ECCTA) to the rollout of digital ID cards, legal and financial firms are firmly in the spotlight. The pressure to get compliance right has never been greater.
“The FCA’s focus on risk-based regulation means businesses must adopt systems that deliver real compliance- not just surface-level processes.