The over-compliance problem in UK law firms
Summary
The article reports concerns raised at a conveyancing AML roundtable that compliance in UK law firms has become increasingly burdensome, with firms collecting more documentation and duplicating checks without clear gains in risk detection. Participants argued that over-compliance is adding stress, unbillable work and inefficiency, and suggested more proportionate, reasoning-led processes supported by technology.
Why it matters
Residential property surveyors often work alongside conveyancers in transactions where AML and source-of-funds checks affect timing, client experience and deal progression. The discussion is relevant because it highlights how compliance practices can slow transactions and increase friction across the wider residential property process.
Key points
- AML compliance is seen as expanding in scope and workload without proportional benefit.
- Firms are increasingly collecting documents defensively rather than to improve risk assessment.
- Over-compliance is creating stress, duplication and unbillable work for fee earners.
- Suggested fixes include proportionality tests, clearer internal thresholds and scenario-based training.
- Technology can streamline checks, but only if firms first define proportionate compliance processes.
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