Navigating the changing AML regulatory environment in the UK – with Teal Compliance, First AML & Xapien

The UK’s AML regime has entered a new, more demanding phase. In 2025, the SRA shifted its focus from whether firms have AML policies to whether they work in practice, issuing 35 fines totalling over £565,000 for weaknesses in firm-wide risk assessments, AML controls, and client-matter assessments. Updated LSAG guidance, a cross-government sanctions review, and the July 2025 Sectoral Risk Assessment, have tightened expectations and reinforced the legal sector’s high-risk status.

Firms must now evidence a clear, documented chain from national risk assessments to file-level decisions, supported by proof rather than assertions. Compliance demands tailored FWRAs, enforceable PCPs, reasoned CMRAs, and responsive, event-driven monitoring—showing that AML systems are active, consistent, and defensible under growing SRA and forthcoming FCA scrutiny.

About Amy Bell

Amy Bell is a leading expert in legal compliance, specialising in anti-money laundering and risk management for law firms. With over 20 years’ experience in the legal sector, she is the founder of Teal Compliance and AML Sorted, helping firms build practical, sustainable compliance frameworks.

About First AML

First AML powers thousands of compliance experts around the globe to reduce the time and cost burden of complex and international entity KYC. Its enterprise-wide, long term approach to the CDD data lifecycle addresses time and cost challenges while improving the customer experience and minimising reputational and security risks.