Excerpt from Today’s Conveyancer Article, Published on Jun 26, 2025.
The UK government has admitted that current Anti Money Laundering (AML) regulations are a major burden for professional business service firms and has committed to reforming the AML rules by the end of the year. In its Professional and Business Services Sector Plan, the government reaffirmed the critical role of AML in protecting against money laundering and terrorist financing, but acknowledged the need to ensure AML requirements are proportionate and clear. HM Treasury is now set to introduce a package of changes to AML legislation aimed at improving its effectiveness. While specific details remain undisclosed, the government confirmed it would promote the use of digital identity to streamline AML compliance. This step is being welcomed by the legal profession, particularly smaller law firms struggling with the mounting AML demands.
The Law Society of England and Wales expressed support for the government’s recognition of the disproportionate impact current AML rules have on legal practices. Its president, Richard Atkinson, emphasized the legal sector’s commitment to combating financial crime but insisted that AML obligations must not come at the cost of justice or place an unfair strain on legal practitioners. He called for an AML system that is risk-based, proportionate, and respects the expertise within the legal community.
Meanwhile, with the Solicitors Regulation Authority set to ramp up AML enforcement, clarity and proportionality in the forthcoming reforms are crucial. Recent financial penalties have raised questions about the cost-benefit balance of AML compliance. Regulatory expert Brian Rogers noted that some firms might financially benefit more by ignoring AML obligations—despite legal risks—highlighting the pressing need for sensible AML reforms. As the government prepares to act, firms across the UK await much-needed clarity and relief in navigating increasingly complex AML expectations.
To delve deeper into this topic, please read the full article Today’s Conveyancer.
