The last few years have brought a steady rise in money laundering risks across legal services, particularly in property and high value transactions. While each UK jurisdiction has its own regulatory framework, one thing is universal: firms are expected to demonstrate strong, consistent, and well documented AML controls.
As we move into 2026, many firms are reviewing how they approach client due diligence, risk assessment and ongoing monitoring – not because of any new regulatory regime, but because the environment is becoming more complex, more digital, and more targeted by financial crime.
This article outlines practical; jurisdiction neutral steps any firm can take to strengthen AML readiness for the year ahead.
1. Strengthen Your Client & Matter Risk Assessments
Across UK supervisory bodies, one principle is consistent: firms must assess and record AML risks at both client level and matter level.
Strong risk assessments should consider:
- Client risk factors (occupation, behaviour, political exposure)
- Matter/transaction risk (value, type of work, purpose)
- Geographic risk (jurisdictions involved, high-risk regions)
- Delivery channel risk (remote onboarding, third-party instructions)
Clear documentation provides the foundation for defensible compliance.
2. Verify Identity Using Reliable, Consistent Methods
Whether firms use manual checks or electronic identity verification (EID&V), regulators expect processes to be:
- Robust
- Repeatable
- Backed by a clear audit trail
Digital verification methods, especially those using secure biometric and data-driven technology, help reduce human error, speed up onboarding and support consistency across teams.
3. Prioritise Early Source of Funds and Wealth Checks
Source of Funds (SoF) and Source of Wealth (SoW) remain challenging, especially in higher-value transactions. Early collection and review of financial evidence allows firms to:
- Identify discrepancies sooner
- Flag risks before significant work begins
- Reduce delays at exchange or settlement
- Ensure documentation is complete and defensible
Technology that analyses financial data securely and accurately can significantly strengthen these processes.
4. Build Continuous Monitoring Into Your AML Practice
Risk does not remain static. A client’s status, behaviour or circumstances may change over the lifecycle of a matter. Firms benefit from:
- Ongoing PEPs and sanctions monitoring
- Keeping risk assessments updated
- Re-checking documents where appropriate
- Recording all risk-related decisions clearly
This proactive approach supports long-term compliance confidence.
5. Maintain Clear Records, Internal Controls and Audit Trails
AML expectations are not only about conducting checks – but demonstrating how they were conducted. Effective firms typically:
- Keep structured AML files
- Train staff regularly
- Perform internal audits
- Document decisions consistently
Strong internal governance forms the backbone of AML readiness.
6. Consider the Role of Integrated AML Technology
Many firms are now moving from fragmented or manual workflows to integrated AML platforms that support:
- Automated identity verification
- Real-time PEPs, sanctions and adverse media screening
- Secure Source of Funds analysis
- Ongoing monitoring
- Embedded risk assessment tools
- Comprehensive audit trails Platforms like Verify 365 give firms the structure, consistency and reassurance needed to manage AML obligations more effectively.
Preparing for 2026: Focus on What You Can Control
No one yet knows what future AML frameworks may look like across the UK’s different jurisdictions. But firms can take practical steps today:
- Strengthen risk assessments
- Modernise verification processes
- Improve Source of Funds checks
- Adopt continuous monitoring
- Build defensible audit trails
- Embrace technology that enhances efficiency and confidence
These fundamentals will help firms remain resilient regardless of how the regulatory landscape evolves.
Ready to Strengthen Your AML Processes for 2026? Verify 365 helps firms streamline onboarding, reduce compliance risk and maintain a complete, defensible audit trail – all within one secure platform. If you’d like to see how Verify365 can support your firm’s AML readiness for 2026: Book a personalised demo or speak with our team for guidance tailored to your practice.
About Verify 365
Verify 365 is an Approved Supplier of the Law Society of Scotland. Our proprietary, UK based technology offers an innovative digital solution for law firms to undertake client ID verification and Source of Funds/Wealth checks. Founded by lawyers for lawyers, our mission is to simplify law firm compliance and onboarding by transforming lengthy paper-based admin tasks into fast digital compliance with just a few clicks. Contact us today for a demonstration and discover how Verify 365 can enhance your law firm’s AML compliance processes and client onboarding experience.
Request a demo at verify365.app/book-a-demo.
