Government removes SRA's AML powers

Phil Cotter, CEO of SmartSearch, the UK's leading provider of digital anti-money laundering solutions, has responded to the government's decision to transfer anti-money laundering (AML) powers from the Solicitors Regulation Authority (SRA) to the Financial Conduct Authority (FCA). Cotter describes this shift as a “wake-up call for the legal sector,” emphasising the need for compliance to evolve beyond a mere “tick-box exercise.” He insists that compliance must be “embedded, proactive and risk-based” to effectively combat financial crime.

With over 6,000 firms and 23,000 individuals heading under FCA oversight, Cotter highlights the enormity of this transition. He warns that firms should anticipate “greater scrutiny, higher expectations and zero tolerance for gaps in compliance.” Cotter’s comments reflect a shared concern within the industry regarding the challenges posed by this regulatory change.

The CEO expresses optimism that the UK Government is prioritising the fight against financial crime, referencing recent legislative measures such as the Economic Crime and Corporate Transparency Act (ECCTA). Additionally, he notes the rollout of digital ID cards as part of these efforts, placing legal and financial firms “firmly in the spotlight.” Ultimately, he cautions that “the pressure to get compliance right has never been greater,” urging firms to adapt swiftly to these evolving expectations.