The Office for Professional Body AML Supervision (OPBAS) has confirmed in a letter that conveyancing work should be considered high-risk for money laundering. This aligns closely with the findings of the SRA’s MLRO Annual Report and sectoral risk assessment.
Key Points:
- Conveyancing as a High-Risk Area: OPBAS highlights that conveyancing is a persistent risk due to the large sums of money involved in property transactions, making it attractive for money laundering activities.
- Risk of Complacency: With multiple parties involved in a conveyance (e.g., lawyers, estate agents, financial institutions), there is a risk that each party might assume others are conducting adequate scrutiny, which can lead to gaps in due diligence.
- SRA’s Approach: The SRA has consistently classified conveyancing as high-risk within its AML framework. It is actively engaged in addressing these risks through supervisory activities, clear guidance, and support to the regulated community.
- Sector-Wide Impact: OPBAS’s confirmation reinforces the need for firms involved in conveyancing to have robust AML controls in place throughout the property transaction process, ensuring that risks are actively mitigated.
- Next Steps: Firms are advised to review both the OPBAS letter and SRA guidance to ensure compliance with AML obligations. Firms may need to enhance their systems, processes, and staff training to better manage the risks associated with conveyancing.
