The structural compliance problem conveyancers face
Summary
The article reports that the Solicitors Regulation Authority has issued significant fines to conveyancing firms for anti-money laundering breaches, with risk assessment failures and weak source of funds checks featuring prominently. It also notes that the SRA is revisiting historical matters, reinforcing the need for contemporaneous, well-evidenced compliance records.
Why it matters
Residential property surveyors working alongside conveyancers should be aware that AML and compliance failures can disrupt transactions and increase scrutiny across the property process. The emphasis on audit trails, risk assessments and source of funds checks is relevant where surveyors encounter transaction delays or requests for supporting information.
Key points
- SRA penalties in conveyancing cases ranged from £1,800 to £32,000 in the first half of 2026.
- Client matter risk assessments and firm-wide risk assessments were identified as major weaknesses.
- Poorly evidenced source of funds checks and outdated policies were common failings.
- The SRA is reviewing historical breaches, including cases dating back to 2011.
- The article stresses that compliance must be evidenced at the right time, not reconstructed later.
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