On 31st July 2025 the threshold amount for submitting a defence against money laundering (DAML) has been increased from £1,000 to £3,000. Certain conditions need to be met. See below:
In the context of the Proceeds of Crime Act 2002 (POCA), a DAML (Defence Against Money Laundering) is a mechanism that allows individuals and businesses to seek consent from the National Crime Agency (NCA) to proceed with transactions that might otherwise be prohibited under POCA due to concerns about handling criminal property. Essentially, a DAML is a request for "appropriate consent" from the NCA to avoid committing a money laundering offense when dealing with potentially tainted funds. The threshold is specifically designed to reduce low-value Suspicious Activity Reports (SARs) and streamline law enforcement efforts.
If you need help with AML & POCA:
AML & Sanctions Training: https://hunningsconsultancy.co.uk/aml-training-when-are-you-required-to-do-this/
Independent AML Audit: https://hunningsconsultancy.co.uk/independent-aml-audit/
Practice or Firm Wide Risk Assessment Review: https://hunningsconsultancy.co.uk/aml-review/
Help with an SRA AML Audit or inspection: https://hunningsconsultancy.co.uk/sra-audits-inspections-assistance/
The SRA published this report on 31st July. Suprisingly it is written so as to be realtively easy to read. We recommend that all owners snd compliance officers of law firms do so. Here is a link to the document: https://www.sra.org.uk/sra/research-publications/aml-risk-assessment/
The document sets out information on money laundering, terrorist financing and proliferation financing risk that we consider most relevant for firms the SRA supervise.
The SRA writes: "All firms that are within scope of the Regulations must comply with all the regulatory requirements. This includes taking appropriate steps to identify, assess and maintain a written record of their risk of being used for money laundering or terrorist financing.
Firms must have regard to this risk assessment, and any updates, when creating and maintaining their own written risk assessment as required by Regulations 18 and 18A of the Regulations, along with a comprehensive knowledge of their business and clients.
We may ask to see your firm's risk assessment."
The most common weaknesses we have observed included inadequate:
If you need help:
AML & Sanctions Training: https://hunningsconsultancy.co.uk/aml-training-when-are-you-required-to-do-this/
Independent AML Audit: https://hunningsconsultancy.co.uk/independent-aml-audit/
Practice or Firm Wide Risk Assessment Review: https://hunningsconsultancy.co.uk/aml-review/
Help with an SRA AML Audit or inspection: https://hunningsconsultancy.co.uk/sra-audits-inspections-assistance/
The situation seems to be quite complicated for Swiss lawyers. So, we have written this article to try to provide some clarity. We have also sought some clarification from the SRA, which has fed into our understanding, as explained below.
Here's a link to a video we've put on YouTube about this: https://www.youtube.com/watch?v=EmB1oTcYVB8
Currently (2025) the situation appears to be that to be considered a qualified lawyer and to be able to practice law in Switzerland one merely needs to graduate with both a bachelors and a masters of law from a Swiss university. That will be sufficient, for example, for acting as inhouse legal counsel in a company. If one wants to represent clients in court, work for the prosecution service or as a notary public, there is an additional exam - attorney exam or bar exam “Anwaltsprüfung”. To qualify for this, you are required to complete 12 months of an internship working in a law firm and/or the courts (this and/or requirement varies between the cantons). You are then eligible to sit first a written exam, and when that is successful an oral exam. Upon successful completion the lawyers then carry the additional title: Avocat, Advokat, Rechtsanwalt, Anwalt, Fürsprecher, Fürsprech or Avvocato (all are the same thing and level of qualification - just differing names depending upon the canton).
Applying for an exemption from the SQE2
The UK government has entered into an agreement with Switzerland for the recognition of professional qualifications. This came into force in the UK on 1st January 2025. As a result, Swiss Avocats, Advokats, Rechtsanwalts, Anwalts, Fürsprechers, Fürsprechs and Avvocatos have 4 possible routes to qualify as a solicitor of England & Wales (instead of the normal 2: sit the exams or get exemption from one of them). [The 2 options which are available to qualified lawyers from most other jurisdictions are the first 2 listed below.]
1. Sit and pass both the SQE1 & the SQE2 exams.
2. Sit one and get an exemption from the other. Exemption from the SQE1 exam is likely only to be obtained if, by chance, you sat and passed the LPC (the old route to qualification). You now wish to switch qualification route end effectively trade in your LPC pass for and SQE1 exemption. Exemption from the SQE2 exam – you may apply only if you are qualified as an Avocat, Advokat, Rechtsanwalt, Anwalt, Fürsprecher, Fürsprech or Avvocato. That will have required you to do 12 months’ internship working in a law firm. You would then have to prove another 12 months of post qualification legal work experience through a Reference Letter(s) signed by the person who directly supervised your work. This is the same as for qualified lawyers from other jurisdictions. (Confusingly, the SRA has called this the ‘Aptitude Test’ route.) There are specific requirements of what needs to go into the Reference Letter. Here is a link to a page on our website where we go into this in detail and where we also set out a service we offer to assist with this: https://hunningsconsultancy.co.uk/sqe2-exemption-for-foreign-lawyers-review-advice/
3. Adaptation period route - if you do not have 24 months' legal work experience and want to do three years' supervised practice instead. This route is an additional one only available to Swiss qualified lawyers. In order to qualify through this route you must register with the SRA as a registered Swiss lawyer and undertake three years' supervised practice in the law of England and Wales. More info here: https://www.sra.org.uk/become-solicitor/admission/pathways-qualification/swiss-lawyers/adaptation-period-route/
4. Registered European lawyer (REL) route - this route is an additional one, only available to Swiss qualified lawyers. This option is only available to existing RELS who were already registered on or before 31 December 2024 (or those who apply by this date and go on to become registered). More info here: https://www.sra.org.uk/become-solicitor/admission/pathways-qualification/swiss-lawyers/rels/
QWE Confirmation
Only relevant if you are not a qualified Avocat, Advokat, Rechtsanwalt, Anwalt, Fürsprecher, Fürsprech or Avvocato - you will have to have at least 24 months of QWE (Qualifying Work Experience) confirmed or signed-off to the SRA by an SRA-regulated solicitor (or COLP). You may use an external solicitor to do this – for example where your firm does not have an SRA-regulated solicitor in it. This is a service we provide. We have assisted several Swiss lawyers. Here is a link to our External Solicitor QWE Confirmation Service: https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/ or fill in the form below. (Qualified Swiss Avocats, Advokats, Rechtsanwalts, Anwalts, Fürsprechers, Fürsprechs and Avvocatos are automatically exempt from the QWE Requirement.)
Inhouse lawyers and a change in Swiss Law
A recent change in Swiss law (which came into effect on 1st January 2025) means that you need the head of legal to be an Avocat, Advokat, Rechtsanwalt, Anwalt, Fürsprecher, Fürsprech or Avvocato. This is because it introduced 'Legal Privilege' for companies for the first time. This covers advice given by inhouse counsel to their business – relevant in litigation. It only applies for companies where the head of the legal department is an advocate (Rechtsanwalt etc). The company gets ‘Legal Privilege’ because of the qualification level of the head of the legal department. Therefore, companies will want to ensure that their Head of Legal is an advocate (Rechtsanwalt etc). Otherwise, these companies could be disadvantaged in civil litigation abroad. So, people who were on the cusp of progressing to General Counsel or Head of Legal, now find themselves blocked unless they qualify as an advocat (Rechtsanwalt etc). The route to full qualification as an advocate (Rechtsanwalt etc) through the Swiss exams is very difficult. However, a solicitor of England & Wales is recognised by Swiss authorities as an advocate (Rechtsanwalt etc). For this reason, Swiss lawyers are seeking to qualify as solicitors through the SQE route.
This is not straightforward. We have tried to explain things here, but feel free to contact us for a zoom to talk through your circumstances!
The SRA were very careful to design the SQE route so that it fell within the government's Apprenticeship Scheme, certainly for England. We have posted information about this: https://hunningsconsultancy.co.uk/apprenticeships-the-sqe-how-this-can-save-you-money/
On 28th May 2025 the government published a press release in which they announced that, from January 2026, they would be 'refocusing' (which we take to mean 'no longer ') funding away from post-graduate qualifications. That would mean that aspiring solicitors who were graduates would no longer be able to get their SQE studies and exams funded through the apprenticeship scheme. We do not know what happens to people already part way through a graduate apprenticeship. You would need to ask your training provider, which would be receiving the funding and so will get the clarification on this.
Please note - the government has specifically mentioned that people doing a 'full apprenticeship' ie, from age 16-21 WILL still be covered by the apprenticeship scheme and be able to receive funding as they do now. The change affects graduates only.
This change was raised as a possibility some time back. There is logic to it. Now it will happen. Here is the link to the press release: https://www.gov.uk/government/news/next-generation-of-builders-and-carers-set-to-rebuild-britain
Help for Aspiring Solicitors
We help with confirming or signing off QWE: https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/
Help with applications for exemption from the SQE2 exam: https://hunningsconsultancy.co.uk/sqe2-exemption-for-foreign-lawyers-review-advice/
Help with verifying your ID: https://hunningsconsultancy.co.uk/id-verification-for-aspiring-solicitors/
Update to the message below - 21.5.25 - we have been in further discussions. It appears that the information given out by their staff member was incorrect. The situation has NOT changed. They have stated to us today: " you just need to fill in the jurisdiction section in their mySRA profile and tell us [the SRA] where they are qualified (be it in England and Wales or overseas). This then automatically tells us [the SRA] they are not required to do QWE." This is a direct quote from Sarah-Jane Dean - External Communications Officer at Solicitors Regulation Authority. Therefore, you may quote this to SRA Admissions if you are told otherwise.
[Please read our post below in the light of this paragraph.] (We are regularly in touch with the SRA to clarify information and will always endeavour to keep you informed of information as it becomes available.)
Up until now we had understood the SRA position to be that is someone was qualified as a lawyer in a jurisdiction they were automatically exempted from the QWE requirement (this is to do with the process to qualify as a solicitor of England & Wales through the SQE route). That was our clear understanding from the start of the SQE scheme. Over time things had happened to make us wonder if the SRA had nuanced their position.
We spoke with the SRA this week (w/c 12th May 2025). They informed us that they were now only granting exemption to qualified lawyers where that lawyer qualified for the exemption from the SQE2 exam. That indeed makes it a lot less clear.
Someone seeking exemption from the QWE element will now need to check whether they would qualify for exemption from the SQE2 exam. Here is a link to where on the SRA website they may check: https://www.sra.org.uk/become-solicitor/qualified-lawyers/sqe-exemptions/ . We do not think that you have to actually make the application for exemption from the SQE2 exam. We will let you know if we are informed otherwise. So far, uploading through your mySRA profile proof of qualification in your jurisdiction has been sufficient for the QWE exemption to be granted.
Help with an application for SQE2 Exemption:
https://hunningsconsultancy.co.uk/sqe2-exemption-for-foreign-lawyers-review-advice/
Help with Confirming or sign-off of QWE:
https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/
Help with Verifying your ID to the SRA before you are admitted:
https://hunningsconsultancy.co.uk/id-verification-for-aspiring-solicitors/
The Legal Sector Affinity Group (LSAG) guidance regarding compliance has recently been approved by HM Treasury and was published on 23 April. Please see a link below to where you may view and download the guidance. We are digesting this and will publish a summary of the main points.
https://www.sra.org.uk/solicitors/resources/money-laundering/guidance-support
We provide a lot of AML support to businesses in the Legal Sector. Please see below for a summary and links for further information. (Watch this space for assistance coming for certain businesses in the Financial Services sector as well.)
(Sanctions Regime compliance - see separate services for this on our website.)
Feel free to contact us, ideally by using the 'How can we help you?' form below.
We asked the SRA if the SQE2 exemption, once granted has an expiry date. We have been asked this several aspiring solicitors. They have written to us to say that it does NOT expire.
Assistance with SQE2 Exemption Applications - Qualified Lawyers
https://hunningsconsultancy.co.uk/sqe2-exemption-for-foreign-lawyers-review-advice/
External QWE Confirmation Service
This is relevant to people who are NOT qualified as lawyers already. If you know of someone who needs an SRA regulated solicitor to confirm their QWE but have no-one in their organisation to do so - we can help. This service would apply to someone who is NOT qualified as a lawyer. Please see the link below and feel free to signpost them to us: https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/
YouTube Videos on SQE, SQE2 Exemptions & QWE:
https://www.youtube.com/@hunningsconsultancy999/videos
Please feel free to subscribe!
The SRA commissioned an independent report to better understand the high-risk market developments that law firms identify and how they mitigate these, where relevant.
Here is a link to the report: https://www.sra.org.uk/sra/research-publications/risk-legal-profession/
Firms were asked to select from a list the top 3 concerns as risk to the organisation over the coming year. The top 3 chosen all related to compliance: AML & Sanctions compliance, cybercrime and other regulatory compliance. An interesting read and good to see what other lawyers are thinking. With regard to opportunities, people identified better use of lawtech and AI as a major one.
Help We Offer
We help firms with regulatory compliance, AML & Sanctions, including reviewing current policies & practice & training. https://hunningsconsultancy.co.uk/compliance-services/
We also help firms improve their usage of the following case management systems: LEAP, Clio, eclipse Proclaim & Actionstep. https://hunningsconsultancy.co.uk/case-management-system-support/
Contact Us
Fill in the form below
Or
Email: [email protected]
It seems that the SRA reviewed 25 law firms (we helped at least 1 of these through this). In general, they found that things were being done well. 21 of them had a written policy and/or procedure on how the firm would account to clients for interest on money held. (If you don't, we can help you.) Most did appropriate training but whilst that covered technical legal aspects well, they often missed other areas of client care. 2 of the firms failed to obtain or submit qualified accountant's reports. (If you don't & need someone, we can recommend someone to you.) 1 firm failed to comply with its AML obligations (again we can help train & advise on this).
Here is a link to the SRA report: https://www.sra.org.uk/sra/research-publications/probate-administration-thematic-review/
Help with Thematic Reviews & Inspections & Audits
We regularly help firms through SRA Audits, Inspections & Thematic Reviews and the SRA Client Account Spot Check. This includes AML & Sanctions audits. See the ink below for information. Contact us by completing the form below. Best contact use early - as soon as you heard from the SRA. We will always offer a free, no obligation initial consultation to assess your needs. We will need to see the communication from the SRA and often all relevant documentation that you have, such as your relevant policies & procedure documents.
https://hunningsconsultancy.co.uk/sra-audits-inspections-assistance/
Italian lawyers who want to work inhouse have to de-register as avvocatos. It's a thing in the Italian jurisdiction. On the face of it, it would create a problem with them meeting the requirements for being able to apply for exemption from the SQE2 exam (part of the SQE route to qualify as a solicitor of England & Wales).
We asked the SRA if that meant that Italian lawyers working inhouse could not apply for exemption from the SQE2 exam unless they left inhouse employment & re-registered as avvocatos. We've heard from the SRA that they do not need to do that. It would appear that this would apply to other jurisdictions with similar circumstances.
Here is the wording of their reply:
"Dear Ingemar Hunnings
Thank you for your email of 6 January 2025.
Qualified lawyers working in-house will not have to re-register to be able to make an application for exemption. The evidence required remains the same as for qualified lawyers, as detailed on our website.
I hope this information is helpful. If you have any further questions, let us know.
Yours sincerely
Karen Williams (she/her)
Authorisation Officer
Authorisation Directorate
Solicitors Regulation Authority /Awdurdod Rheoleiddio Cyfreithwyr"
Help we offer
For general advice & assistance with applications for exemption from the SQE2 exam:
https://hunningsconsultancy.co.uk/sqe2-exemption-for-foreign-lawyers-review-advice/
For Videos about SQE2 exemptions & QWE:
https://www.youtube.com/@hunningsconsultancy999/videos
External Solicitor QWE Confirmation Service
If you are NOT qualified as a lawyer in any jurisdiction, you will have to have a minimum of 2 years' Qualifying Work Experience confirmed to a the SRA by an SRA regulated solicitor. If you do not have anyone in your company to do this, we can help.
https://hunningsconsultancy.co.uk/external-qwe-certification-service-2/
