Leading AML technology provider emphasises that responsibility for preventing money laundering remains unchanged

22 October – Swindon – Lawtech Software, the company behind the Verify 365 AML and onboarding solution, has responded to the government’s announcement that the Financial Conduct Authority will take over anti-money laundering supervision from the SRA, emphasising that law firms must continue to treat fraud and money laundering prevention with the utmost seriousness.

The change, announced by Chancellor Rachel Reeves as part of a wider reform of the UK’s AML supervisory regime, represents an unexpected and major shift in how the legal sector will be regulated. The FCA will become the Single Professional Services Supervisor (SPSS) for AML, significantly reducing the SRA’s role after nearly two decades of oversight.

Rudi Kesic, Founder and CEO of Lawtech, and previously a lawyer himself, commented: “This is undoubtedly a significant and somewhat unexpected change for the legal sector.”

“However, what cannot change is the fundamental obligation law firms have to prevent their services being used for money laundering. Regardless of who supervises compliance, the conveyancing process remains a prime target for criminals seeking to legitimise illicit funds through property purchases. Firms’ legal requirements under the money laundering regulations remain in force, and firms must continue to meet them.

“We’ve seen the consequences of inadequate AML compliance, with the SRA issuing fines totalling over half a million pounds in 2023/24 alone, with many firms penalised for failing to conduct proper source of funds checks, lacking adequate risk assessments, or having insufficient staff training. These aren’t administrative technicalities; they’re critical safeguards against serious criminal activity.”

Kesic added: “The transition to FCA supervision will undoubtedly bring questions and uncertainty. Law firms will need to understand how the FCA’s approach differs from the SRA’s, what new expectations may be introduced, and how existing guidance will be interpreted. What’s crucial is that firms don’t allow this transitional period to weaken their vigilance.

“Technology has a vital role to play here. Solutions that provide biometric identity verification linked to official databases, real-time source of funds validation through secure open banking, and comprehensive audit trails can help firms maintain robust compliance regardless of who their supervisor is. These tools don’t just tick regulatory boxes; they protect firms from becoming unwitting facilitators of financial crime.

“We recognise this is a period of change and some apprehension for the sector. But the core principle remains unchanged: law firms must know their clients, verify the legitimacy of funds, and maintain comprehensive, risk-based approaches to AML. The criminals targeting the property market won’t pause during a regulatory transition, and neither can law firms’ defences against them.”

ENDS

Notes to Editors

About Lawtech Software Group

Lawtech Software Group is a leading provider of legal technology solutions, offering innovative platforms designed to streamline legal processes, improve client engagement, and manage compliance. With a focus on the conveyancing and property market, Lawtech’s technology is at the forefront of the digital transformation in the legal sector. Their flagship product, Verify 365, is a leading AML risk and compliance KYC platform, offering comprehensive legal tech solutions, including ID biometric checks, address verifications, PEPs/sanctions screenings, and much more.

For more information, go to verify365.app.

For media enquiries, please contact: support@verify365.app