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Conveyancing is one of the highest-risk legal services for money laundering, according to the Solicitors Regulation Authority’s sectoral risk assessment. The Law Society also identifies property transactions as a significant money laundering risk, given the substantial sums involved and the opportunities they can create to move or disguise illicit funds. 

Whether you are a solicitor or conveyancer, you have a role to play in identifying suspicious activity during property transactions. Warning signs are not always obvious, and one red flag alone does not necessarily mean money laundering is taking place. The key is recognising unusual circumstances and responding appropriately.

Property transactions carry particular money laundering risks. High transaction values, complex ownership structures and cross-border buyers can make property an attractive route for moving or concealing illicit funds.

For property lawyers, understanding the legal framework governing these risks is essential. This guide explains the key AML laws and regulatory instruments that apply to property transactions in England and Wales, from the Money Laundering Regulations 2017 and the Proceeds of Crime Act 2002 to the Register of Overseas Entities.

Residential and commercial conveyancing remain among the highest-risk areas of legal practice from an anti-money laundering (AML) perspective. With large sums of money changing hands and property transactions offering opportunities to conceal the origins of funds, regulators continue to scrutinise firms’ AML arrangements closely.

However, AML failures do not only become a concern when criminal activity or actual money laundering is discovered. Regulators can take action when a firm’s systems and controls, risk assessments, record-keeping, or source of funds procedures fall below the required standard, even where there is no evidence that money laundering has taken place.

Most accountancy firms don't intentionally fall behind with their anti-money laundering (AML) compliance responsibilities. However, for partners, directors, practice managers, and MLROs, maintaining an effective AML framework alongside client work and operational responsibilities can be increasingly challenging. Even firms with well-established processes can develop gaps over time if their approach isn't regularly reviewed and updated.

In this article, we explore six of the most common AML compliance challenges facing accountancy firms and the practical steps you can take to overcome them. Whether you're reviewing your firm's existing procedures or looking to strengthen your compliance framework, recognising these common issues can help you identify gaps and reduce the risk of compliance failures.

Conveyancing has long been recognised as one of the highest-risk areas of legal practice for money laundering. High-value property transactions, complex ownership structures, third-party funding arrangements, and increasingly sophisticated criminal methods all create opportunities for illicit funds to enter the UK’s property market. As a result, conveyancing firms are expected to maintain robust anti-money laundering (AML) controls that go beyond simple identity checks.

For conveyancing firms regulated by the CLC, compliance is not something to revisit only when an inspection is due. It needs to be embedded into everyday practice, shaping how risks are identified and how matters are managed.

Too many firms still treat their Firm-Wide Risk Assessment (FWRA) as a box-ticking exercise, and as expected, regulators are noticing. The SRA has placed significant emphasis and scrutiny on  FWRAs as part of its AML thematic reviews and inspections, and rising threats (such as proliferation financing) mean yesterday’s assessment may no longer be adequate today.

"Know Your Customer" (KYC) is an essential regulatory requirement for businesses, particularly within the legal and financial sectors, aimed at verifying the identity of clients to prevent illegal activities such as money laundering and terrorist financing. This guide provides a detailed overview of the KYC requirements in the UK for 2026, highlighting key aspects, regulations, and best practices.

The UK Government announced in October 2025 that the Financial Conduct Authority (FCA) will take over AML supervision for all UK lawyers practising within the scope of the Money Laundering Regulations 2017 (MLRs). This change will alter the Solicitors Regulation Authority’s role and that of the CLC, but it does not mean lighter scrutiny. 

It is incumbent upon firms in the legal sector to ensure that staff involved in financial transactions understand not only as to where a client obtained the funds for a transaction, but also how this relates to their overall wealth.