The government must ensure new anti-money laundering reforms do not subject law firms to overlapping regulation, unnecessary financial burden and conflicting requirements, the Law Society warned today.

City regulator the Financial Conduct Authority is due to assume the policing of money laundering regulations from the Solicitors Regulation Authority and other legal and accountancy regulators at the end of 2028.

As the Financial Services and Markets Bill, which will enable the change, receives its second reading in the House of Commons, the Law Society is calling for greater clarity on how the changes will work in practice. This includes how responsibilities will be divided when more than one regulator has an interest in the same issue, including where FCA supervision may overlap with legal sector regulation.

Society president Brett Dixon said: 'The proposed anti-money laundering reforms represent a seismic change to law firms and the legal sector. We support the government taking robust and effective action against economic crime. The new bill, however, must not result in over regulation and should consider how legal services work in practice.

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'This must include careful assessment regarding the bill’s effect on law firm owners, managers and Money Laundering Reporting Officers, whose businesses and positions risk being the most affected by the changes.

'Implementing robust safeguards and conducting thorough assessments of how the changes will work in practice are essential to prevent regulatory duplication and protect the core principles of legal practice.'