Most law firms know that the FCA is expected to become the UK's single anti-money laundering supervisor for the legal sector over the coming years.
What fewer firms appreciate is that the transition has already begun.
The conversation around FCA supervision is often framed as a future compliance challenge. In reality, firms that wait until formal implementation risk finding themselves several years behind competitors who have already begun modernising their controls, processes and technology.
The legal sector has historically approached compliance as a regulatory obligation. Under FCA-style supervision, firms may need to demonstrate not just compliance, but effectiveness.
That is a significant difference.
Our latest research found that only 23% of legal professionals describe themselves as very confident in their AML obligations, while 77% admit they are not fully confident. Meanwhile, 55% of checks remain manual and 62% of firms reviewed by the SRA had at least one AML compliance gap. These figures suggest many firms are still relying on compliance frameworks that may struggle under increased scrutiny.
The FCA's approach is typically more data-driven, outcomes-focused and interventionist than traditional professional-body supervision.
For legal firms, the question is no longer:
"Are we compliant?"
It's becoming:
"Can we demonstrate that our controls work?"
The firms that gain the greatest advantage will use the period between now and implementation to:
The firms that delay may face significantly higher implementation costs later.
SmartSearch enables legal firms to move beyond manual checks through:
The future of compliance is not more paperwork.
It's better evidence.