The Financial Conduct Authority is still figuring out how it will police its new anti-money laundering responsibilities so conveyancers should not ‘panic buy’ compliance products, an economic crime specialist has said.
The financial services watchdog is due to take over anti-money laundering supervision from the Solicitors Regulation Authority in 2028.
However, Simmons and Simmons’ Amasis Saba, a current member and former chair of the Society’s economic crime taskforce, told the Law Society’s property conference that the timetable is still vague and there is little conveyancers can do right now to prepare for the new regime.
Saba said: ‘Focus on what the SRA is requiring, make sure you’re complying with their requirements. The FCA has not worked it through. They recognise we are a very different industry. They are going to get an extra 60,000-90,000 new entities they are going to regulate. Any suppliers saying “you need this it’s FCA-compliant”, it’s absolute silliness. Do not panic buy things at this point.’
The transfer of power will take place under the Financial Services and Markets Bill, which commenced its parliamentary journey in the House of Lords and is awaiting its second reading in the Commons.
Asked for AML tips, Saba told the conference that when regulators intervene, they are not looking for money laundering, ‘they are looking for systems and controls’.
He added: ‘If you look at pretty much all of the fines, they all come with the line “and there was no money laundering” or “they did not identify as a PEP [politically exposed person]”… It is literally about “can you prove that you have the systems and controls?”. Keeping a log of the clients you decline is a great way of demonstrating your system works.’
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