There is growing concern within the legal and property sectors about the unintended consequences of the UK’s current anti-money laundering (AML) regime—particularly its impact on homebuyers and conveyancers. Here’s a summary and analysis of the key points:

Key Issues Raised:

1. Regulatory Burden:

   • AML legislation and accompanying guidance now exceed 1,500 pages, creating a significant compliance burden.

   • Conveyancers and solicitors are expected to navigate this complexity, often under intense time pressure from clients.

2. Impact on Homebuyers:

   • Delays of 1–2 months are reportedly being added to average property transactions due to AML checks.

   • Clients are frustrated, and lawyers are unfairly blamed for delays caused by legal compliance, not negligence.

3. Limited Effectiveness of Legal Technology:

   • While tech solutions are intended to streamline AML compliance, the PLA argues they have little practical effect on transaction times, especially when clients delay or refuse to submit required documentation.

4. Penalties and Professional Pressures:

   • Solicitors face substantial fines for non-compliance—even when no money laundering has occurred.

   • This has led to a legal workforce that is, in the PLA’s words, “chastened, fearful, overburdened, overstretched, and demoralised.”

5. Call to Action:

   • The PLA seeks:

     • An independent cost-benefit analysis of the current AML framework’s effect on property transactions and the economy.

     • A commission to review and potentially repeal excessive or ineffective AML regulations.

Analysis:

This is a classic case of regulatory overreach impacting service delivery and public trust. While preventing money laundering is undoubtedly crucial, the PLA’s position reflects a growing concern that the costs may be outweighing the benefits in sectors like residential conveyancing.

If these delays are widespread, they could be having a material impact on housing market fluidity, economic activity, and public perception of legal services.

Implications:

• For Government: The pressure to strike a better balance between security and efficiency in the property market is mounting. Ignoring these calls could erode trust in regulatory systems.

• For the Legal Sector: Increased compliance requirements may necessitate further investment in training, tech, and staffing—but only if the rules remain unchanged.

• For Buyers and Sellers: Longer, more frustrating transactions may become the norm unless reforms are enacted.