August 2026 - DG Legal Newsletter
DG legal is a one stop shop for legal consultancy. The team headed by David has such a broad spectrum of experience that they are always able to provide first class advice whatever the situation. Their ongoing compliance toolkit is extremely user friendly and they are always one step ahead of compliance updates. We have used DG since 2006 and in that time their offering has only got stronger.
Robert Borwick
Director | ABV Solicitors
Each month we provide our Retainer clients with a highly rated compliance bulletin covering what they need to know and what action they must take. We provide short summaries of our compliance bulletins as monthly newsletters.
AML Updates
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To discuss how we can assist your firm meet the AML regulations, including preparing and updating a Firm Wide Risk Assessment, conducting an Independent AML audit (Regulation 21 audit), drafting compliant policies and procedures and providing AML training to your staff, please get in touch by emailing consultants@dglegal.co.uk or by calling 01509 214 999.
Who should read this item: All firms
Update to the SRA’s Sectoral Risk Assessment on anti-money laundering, terrorist financing, proliferation financing and sanctions
Thursday 27 August 2026 By Melanie O'Brien
The SRA has updated its Sectoral Risk Assessment, highlighting the main money laundering and sanctions risks facing law firms. The update reinforces existing risks while identifying several emerging threats firms should address in their AML frameworks.
Who should read this item: All firms
High Risk Third Countries
Thursday 27 August 2026 By Melanie O'Brien
Following its June 2026 Plenary Meeting, FATF updated its lists of jurisdictions posing higher money laundering and terrorist financing risks. Firms should review whether these changes affect their geographic risk exposure.
Who should read this item: All firms
AML/CTF Supervision Reform Update
Thursday 27 August 2026 By Melanie O'Brien
HM Treasury has confirmed plans for the Financial Conduct Authority (FCA) to become the Single Professional Services Supervisor (SPSS) for AML/CTF supervision across the professional services sector, including legal firms. The reforms represent a major change to the UK's AML supervisory regime but are not expected to be fully implemented until at least 2028.
Who should read this item: Firms that offer services in wills, family, employment and litigation.
Scope of AML Regulated Work in Non-Transactional Legal Services
Thursday 27 August 2026 By Melanie O'Brien
AML regulated work extends beyond transactional work and will include other legal services including trust creation or facilitation of tax advice even if ancillary to a larger, generally non-regulated area of practice.
We have set out some common areas which would most likely fall within the scope of the Money Laundering Regulations 2017 (as amended) and require a firm to be authorised under those regulations. Any failure to seek appropriate authorisation is not only a criminal offence but it also subjects the firm to risk of severe disciplinary action by the SRA. A firm may also find that it is not insured for those services where this constitutes a delivery of unregulated/unauthorised legal work.
Who should read this item: All firms
SRA Desk-based Reviews and AML Investigations
Thursday 27 August 2026 By Georgia Tuckley
The SRA has significantly increased its anti-money laundering (AML) supervision, making regulatory engagement a routine part of legal practice. Firms of all sizes may be selected for reviews based on factors such as risk profile, thematic review programmes, intelligence received, or follow-up checks on previous findings. Smaller firms should not assume they are exempt from scrutiny.
Who should read this item: All firms
Regulation 21 Audits
Thursday 27 August 2026 By Georgia Tuckley
Regulation 21(1)(c) of the Money Laundering Regulations requires firms, where appropriate to their size and nature, to establish an independent audit function to assess the effectiveness of their AML policies, controls and procedures (PCPs). This is not an automatic requirement for every firm. Instead, firms must assess whether an independent audit is necessary based on their size, risk profile and business activities.
Independent audits can be conducted by external auditors with AML expertise or internal reviewers, provided they are suitably knowledgeable, independent, and not reviewing their own work. The purpose of the audit is to provide assurance that AML controls are working effectively and to identify areas for improvement.
Who should read this item: All firms
AML Compliance: Key SRA Findings and Practical Actions for Law Firms
Thursday 27 August 2026 By Melanie O'Brien and Raquel Britton
The Solicitors Regulation Authority (SRA) is increasing its AML supervisory activity and continues to find significant compliance weaknesses across law firms. Recent reviews show that firms often struggle with risk assessments, source of funds checks, due diligence requirements, and maintaining effective AML frameworks.
Who should read this item: All firms
Changes to customer due diligence and enhanced due diligence
Thursday 27 August 2026 By Melanie O'Brien
The 2026 MLR amendments introduce a more risk-based approach to AML compliance.
The changes reduce some automatic AML requirements but firms must now place greater emphasis on documenting and evidencing AML decisions in order to be able to justify those decisions to regulators.
Legal Aid Updates
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To discuss how we can assist your firm with legal aid compliance, please get in touch by emailing consultants@dglegal.co.uk or by calling 01509 214 999.
BSB Practising Certificate Renewals
Friday 14 August 2026 By Melanie O'Brien
The Legal Aid Agency (LAA) has announced a new procurement process for legal aid contracts in the Inquests category of law, introducing dedicated inquest contracts under the 2024 Standard Civil Contract. Existing legal aid categories will continue to allow inquest work but you may also now tender for contracts (pursuant to the 2024 Standard Civil Contract Terms) that focus specifically on inquests.
Providers submitting applications by 4 September 2026 can be approved in time for service launch when the Bill comes into force. However, the tender application process will remain open until around 31 March 2027 with contracts awarded monthly on a rolling basis.
BSB Practising Certificate Renewals
Friday 14 August 2026 By Melanie O'Brien
The LAA has made some changes to CBAM including expanded guidance on prison law funding, updated guidance on remuneration for administrative activities, and revised principles for assessing telephone and letter costs.
The Supervisor Guidance for crime contract has also been updated following the Mazur case and now includes references to the SRA’s guidance on effective supervision.
Changes to Delegated Authorities
Friday 14 August 2026 By Melanie O'Brien
In addition, from 15 July 2026 the LAA introduced interim measures allowing family providers to delegate the grant of legal representation for Child Focused Model pilot cases where Family Help (Higher) funding has already been granted. Providers must record the case as a Child Focused Model matter within CCMS and note the use of delegated functions. Relevant delegated authority guidance will be updated accordingly.
Contact Us
To discover more about how we can help your firm with compliance issues, please call 01509 214 999, send us an email or complete our free enquiry form.