From the relentless fight against money laundering to the integration of AI and the need to navigate evolving sanctions, 2024 has presented the legal sector with challenges demanding unwavering resilience, adaptability, and a proactive approach to compliance. 

In our comprehensive review of 2024, we explore the pivotal moments, trends, and regulatory shifts that have defined the year, highlighting how Legal Eye has supported law firms in meeting their obligations and staying ahead of the curve. 

January   

Legal Eye shortlisted for ‘Risk and Compliance Support Service’ of the Year award.

The new year began on a high note with Legal Eye’s nomination for ‘Risk and Compliance Support Service of the Year’ at The British Conveyancing Awards. This recognition highlighted our unwavering commitment to supporting COLPs and HOLPs in tackling the challenges of risk management and compliance.  

February

SRA consumer protection review launched

The SRA initiated a review examining how to protect consumers when they place their trust in a regulated law firm. The review focused on two main areas:  

1. How to reduce the risk that something goes wrong at a regulated law firm that causes harm to consumers 
2. Compensation fund arrangements. 

 The submission deadline is now closed and the post-consultation analysis is expected in early 2025.  

Legal Eye sponsor and speaker at the 2024 Conveyancing Association Conference

As 2024 unfolded, Legal Eye was a proud sponsor at the prestigious Conveyancing Association Conference. At this industry-leading event, our managing director, Paul Saunders, joined a panel discussion on ‘Source of Funds and Digital Signatures’, contributing to key conversations on AML, digital onboarding, and mandatory upfront information. 

Webinar in partnership with InfoTrack

In collaboration with InfoTrack, Legal Eye delivered an exclusive webinar focusing on risk assessments. This session, led by Lisa Edwards (InfoTrack national sales manager) and Norman Denton (Legal Eye senior compliance consultant), provided actionable insights on:  

• Conducting effective client and matter risk assessments 
• Demonstrating ongoing compliance 
• Evaluating sources of funds and wealth 
• Identifying best practices and pitfalls 
• Equipping firms with tools to navigate complex risk assessments. 

Tips on how to master complaint management

No law firm wants to receive complaints, but when a grievance is made, a prompt and effective response often defuses the situation. In February, we offered guidance to help law firms respond to complaints, helping to preserve their reputations while reducing the likelihood of future grievances. 

Highlighting cyber security risks in 2024

A backdrop of rising cybercrime, notably propelled by Russian-backed groups amid the ongoing conflict in Ukraine, meant the legal sector’s vulnerability to evolving cyber threats was critical. In early 2024, we highlighted the cybersecurity risks facing legal businesses and outlined proactive measures firms could take to enhance their defences. 

Updates on CQS requirements

Effective 1 May 2022, the CQS integrated the AML audit into a firm’s practice-wide risk assessment – imposing a new obligation for CQS firms. In February, we provided an update on our work in this area.  

March

New module for Legal Eye Academy users  

As we moved into spring, we launched a new module designed to help law firms navigate the intricate details of the UK GDPR. Amongst other things, the module covers:  

• Personal data definitions and lawful processing 
• Special category data and individual rights 
• Data breaches and ICO responsibilities. 

You can find out more about the Legal Eye Academy here.  

Preparing for the second Economic Crime Act

On 1 August 2022, the Economic Crime (Transparency and Enforcement) Act came into force. Designed to tackle the UK’s dirty money problem, the legislation gained momentum following Putin’s invasion of Ukraine. In March 2024, further company law changes were introduced to make it harder for foreign criminals to launder money through the UK. We provided guidance on the new rules, highlighting how robust risk and compliance policies and processes had never been more critical. Today’s Conveyancer also covered our advice.  

Legal Eye wins ‘Risk and Compliance Support Service of the Year’ award  

Following our shortlisting at the start of the year, we were honoured to be named ‘Risk and Compliance Support Service of the Year’ at the fourth annual British Conveyancing Awards. Legal Eye impressed judges with our commitment to removing the wealth of compliance burdens conveyancers face. To say we were thrilled is an understatement! 

April 

SRA updates on SLAPP 

The SRA published a thematic review of law firms’ understanding of strategic lawsuits against public participation (SLAPPs). According to the regulator, while firms had a good overall awareness of SLAPPs, there were concerns about the lack of processes and controls regarding third parties.  

Strengthening AML Compliance following SRA fines 

In April, we shared details of the latest SRA fines, including:  

• Clement Hughes & Co: Fined  £9,993.40  
• David Barney & Co: Fined  £17,223.21 
• Beighton Singh Limited: Fined £19,482  
• TP Legal Ltd: Fined £12,181  

From October to March, the SRA issued or agreed 19 fines for AML misconduct. Ten of these were for at least £10,000. With the SRA cracking down on AML breaches we encouraged firms to contact us for clear, practical compliance advice. 

May 

Insights on LUHC inquiry into home buying and selling 

In May, we looked at the LUHC Committee’s inquiry, aimed at improving home-buying processes in England. We set out the key issues to be examined, the timescales, and where to watch the sessions. You can read what we had to say here.  

SRA updates SLAPP warning  

The regulator updated its warning to solicitors about getting involved in abusive litigation aimed at silencing legitimate critics, known as strategic lawsuits against public participation (SLAPPs). 

June 

Advocacy for mandatory upfront selling information  

As the LUHC inquiry progressed, Legal Eye shared insights into industry calls for mandatory upfront information to streamline property transactions.

SRA consults on updates to financial penalty regime 

The SRA consulted on potential changes to financial penalties. Amongst other updates, the regulator proposed introducing new fining bands for more serious misconduct.  

Webinar on managing Source of Funds across commercial property and corporate matters. 

In our latest webinar, Norman Denton of Legal Eye and Tom Lyes from Armalytix discussed best practices for managing Source of Funds in commercial and corporate matters. 

July  

Exploring AI in the legal sector  

AI’s capability is reshaping how law firms operate, how legal decisions are made, and how justice is administered. In July, we looked at how the legal sector uses AI and how its growing adoption brings new regulatory challenges and compliance risks.  

Compensation fund increases confirmed 

The SRA confirmed that contributions toward the SRA Compensation Fund would increase for the first time in five years. Individual contributions for 2024/25 will be £90, while firm contributions will be £2,220. 

August 

AML data collection initiative launched  

Law firms must ensure their anti-money laundering processes and practices align with current and evolving regulatory expectations. In August, the SRA launched a comprehensive data collection exercise focusing on AML within the legal sector. 

Insights into key PII renewal concerns 

Professional Indemnity Insurance (PII) renewal remains one of the most important dates on the legal calendar. With PII renewal season approaching, Legal Eye looked at the issues likely to be on the underwriters’ radar in 2024. These included:  

• Robust client account management 
• Firm finances 
• How firms are managing the risk of conveyancing work 
• The Building Safety Act 2022  
• Cyber security 
• Sanctions 
• AML compliance 
• Artificial Intelligence  
• Health and wellbeing 

As always, we advised all firms to take steps to reduce risk and alleviate any potential concerns to ensure hassle-free renewal.  

Key updates to the UK sanctions regime

The SRA issued new guidance to help firms comply with the UK’s evolving sanctions rules. Key changes (as of 5 Aug 2024) included: 

• Key information for all firms, followed by specific guidance for firms under the sanctions regime 
• Insights from recent sanctions inspections  
• An example to show how firms can unintentionally get involved in sanctions issues 
• Updated red flags  
• Updated guidelines on how to stay compliant with licence rules and reporting requirements 
• Easier access to external resources. 

September

Resources for compliance with transparency rules 

The regulator released a suite of resources to help law firms provide clear, accessible information on services, costs, and customer experiences. Key updates included:  

• Simplified pricing templates 
• New comparison website code (with CLC & CILEx) 
• Updated customer review guidance. 

The publication of these materials came as the number of warnings and fines issued by the SRA in relation to transparency rules increased. 

CLC AML supervision

In September, we also looked at the role of the CLC in AML supervision and provided some guidance to ensure compliance with the latest policy updates. Our advice included:  

• Carrying out regular AML training 
• Developing clear AML policies 
• Using robust client ID and verification tools 
• Maintaining detailed records 
• Carrying out regular audits and reviews 
• Using expert outsourced training, guidance and audits  
• Encouraging a compliance culture.

Participation in the Law Society AML conference 

We joined specialists from the Law Society’s Economic Crime Task Force, the SRA, and experts across the legal sector to discuss topics including GDPR vs MLR, suspicious activity reporting (SARs), preparing for an independent audit, and key AML updates. Thank you to everyone who came along and said hello at the event.  

October  

SRA 2024/2025 business plan published

The SRA published its 2024/25 business plan, outlining its key priorities and areas of work for the year ahead. Responding to new and emerging risks in the sector, the updated business plan outlines work the regulator will do in 2025 to:  

• Take forward themes and issues emerging from its Consumer Protection Review 
• Consider issues and potential future activity relating to bulk claims litigation 
• Improve its approach to identifying and managing risk, including through better use of data. 

You can find out more on the SRA’s website.  

Impact of the SRA’s 2024 AML data collection initiative

With the SRA’s data collection exercise closed for submissions, we provided insights into how the results could affect the regulatory landscape.  

For example, by gathering detailed information on firms’ AML practices, the regulator will likely identify areas where compliance is lacking, potentially leading to increased scrutiny and more stringent regulations. Additionally, we expressed how this exercise may signal a shift toward a more rigorous approach to AML compliance, with firms that fail to meet regulatory standards facing more stringent fines, disciplinary action, or increased monitoring. 

November 

SRA consultation on client money handling 

The SRA launched a major consultation, exploring potential changes to how client money is handled and safeguarded. Key issues under review included: 

•  The future of holding client money 
• Rules around client account interest 
• Whether current controls, checks, and balances are sufficient 
• Compensation Fund contributions.  

Showcasing LEQS accreditation for Collaborative Conveyancing

We were delighted to announce that Collaborative Conveyancing had achieved the prestigious Legal Eye Quality Standard (LEQS) accreditation. Our managing director, Paul Saunders, praised Collaborative Conveyancing for its achievement, noting that the LEQS is awarded only to firms that clearly prioritise regulatory integrity. 

AML training best practices  

At the SRA’s latest AML and Financial Crime conference, the regulator stressed good AML training should be: 

• Accessible and relevant to all staff members 
• Grounded in real-life examples to make the training relatable and current 
• Delivered using a variety of methods 
• Tested to ensure effectiveness in the real world. 

In November, we outlined what makes AML training effective. 

SRA Compliance Officers Conference 

Also in November, Legal Eye attended the Solicitors Regulation Authority Compliance Officers Conference. The event featured notable speakers, such as Alexandra Jones, the SRA’s director of AML. We provided a handy summary of what she had to say at the event, which you can read here.  

Our managing director, Paul Saunders, was a featured panellist at the event, joining industry leaders for an engaging discussion on “AI and Lawtech: Preparing Your Firm for the Future.” 

SLC Conference 2024 

Legal Eye also joined industry leaders, experts, and practitioners for a day of insight, networking, and knowledge-sharing at the SLC annual conference. Event highlights included:  

• Updates on key regulatory changes and compliance  
• Expert panels discussing market trends and best practices  
• Opportunities to network with fellow conveyancers and legal professionals  
• Interactive workshops and CPD sessions. 

December

SRA AML inspection insights  

At the 2024 SRA Compliance Officers conference, the regulator discussed ongoing compliance gaps and highlighted common risk areas within the legal sector.  

In December, we shared findings from the SRA conference, spotlighting areas for improvement, including AML risk assessments and the need for supervision, training, and a compliance-driven culture.  

Looking forward to 2025

We extend our heartfelt thanks to our clients, partners, employees, and friends for your trust and collaboration throughout the year.  

As we enter 2025, everyone at Legal Eye remains steadfast in our mission to support law firms in meeting their ever-evolving risk and compliance obligations – whether through tailored consultancy, cutting-edge training, or best-in-practice resources.  

Whilst AML is undoubtedly the key focus for the regulators at the moment, it’s also critical to keep an eye on your firm’s risk and compliance system as a whole. Legal Eye offers a firm-wide comprehensive review service which covers policies and procedures (not just the ones related to AML), the office manual, and work type-specific guidelines. 

Our comprehensive list of services include:  

• Risk & Compliance Firmwide Review 
• AML Independent Audit 
• Compliance Annual Support Packages 
• File Reviews 
• Complaints Handling 
• Training (various modules): Live and exclusive or via our online Academy Platform 
• AML Enhanced Bespoke Training – live and exclusive 
• Accreditation Application and Support Service (CQS, Lexcel, WIQS) 
• Legal Eye Quality Standard (LEQS) 
• GDPR compliance 
• Acquisition and Merger Compliance Audit 
• Policy & Procedure Precedent Documents (click here for our online policy store). 

Wishing you all a happy, successful, and compliant 2025! 

Contact Legal Eye today to learn how we can support your firm’s AML compliance needs. Email: [email protected] or call 020 3051 204.