Just under half (42 per cent) of regulated firms have reported a rise in financial crime attempts, according to anti-money laundering provider SmartSearch.
The survey, which asked over 500 UK businesses across the legal, property, finance and accountancy sectors, found nearly half (48 per cent) of legal professionals, solicitors and conveyancers reported a rise in financial crime attempts in 2023, compared to 34 per cent the year prior.
Estate agents and other property professionals reported the biggest increase in financial crime in 2023, jumping from 17 per cent in 2022 to 37 per cent in 2023.
Martin Cheek, managing director of SmartSearch, and a qualified lawyer, said: “As the gatekeepers of the UK’s financial system, regulated firms in these sectors are on the frontline in the ongoing fight against financial crime.
“As attempts increase and more criminals look to exploit weaknesses to launder money and legitimise illicit funds, regulated firms must remain proactive and ensure their compliance processes are robust enough to withstand such attempts.”
Firms in the finance sector actually reported a decrease in financial crime (54 per cent in 2022), yet 41 per cent of firms still saw a rise in attempts.
Slightly more accountancy firms (42 per cent) made the same admission.
Meanwhile, the same survey found more than a quarter (26 per cent) of regulated firms fell victim to financial crime in the past six months – more than double the number (12 per cent) in 2022.
The number of property firms (29 per cent) finding themselves prey to financial criminals increased almost five times since 2022, while finance firms falling victim to financial crime more than doubled to a third (14 per cent in 2022).
Cheek said: “For those firms that have already become a victim of money laundering or financial crime, I cannot think of a higher priority this year.
“As the threat level has risen, many firms have taken the opportunity to implement a digital compliance strategy, utilising the latest technology, along with real-time data to transform this onerous task into a seamless part of client onboarding and ongoing monitoring.”
sonia.rach@ft.com
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