Brigid Napier

More than a third (34 per cent) of relevant firms were subject to a desk-based review or on-site inspection in the year to April 2022, up from 20 per cent in the previous year.

Brigid Napier, president of the Law Society, said it had “significantly increased its supervisory activity” and would continue to “work with firms to monitor improvement and to ensure compliance”.

Of the 104 DBRs conducted in 2021-22, 68 firms were given a compliant rating, 28 firms were provided with a generally compliant rating and eight firms were not compliant, the supervisor’s annual report for 2021-22 states.

A solicitor was admonished by a tribunal this year after an on-site inspection in September 2019 had noted that the solicitor had acted in administration of an estate, a regulated activity, despite having previously informed the Law Society that he did not meet the definition in the money-laundering regulations.

Ms Napier said: “Robust AML policies and procedures should be at the heart of every firm’s operational practice. We will continue to identify new ways of communicating key AML themes to our members including using online and podcast media.

“The Society is committed to working with firms to ensure that regulatory obligations are adhered to and that the risk of exploitation of firms for money laundering purposes is significantly reduced.”