Policy background Legal services – SRA information request powers
Legal professionals are already bound by high standards with regards to their anti-money laundering obligations. In light of the war in Ukraine, legal services regulators have updated their guidance to support the sector to aid compliance with the economic crime regime, particularly in relation to sanctions. It is important that regulators have the right tools, such as the ability to request information from their regulated communities, in relation to economic crime.
	The Solicitors Regulation Authority (SRA) regulates all solicitors and law firms in England and Wales. The SRA can proactively request information from two-thirds of its regulated community under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). However, it cannot request information in relation to activities that are exempt from the MLRs unless it has a suspicion of solicitor misconduct.
	The risks of economic crime are not restricted to money laundering, with fraud and breaches of the sanctions regime also posing significant risks. The SRA lacks the necessary proactive information request power to supervise economic crime compliance, leaving it vulnerable to challenges being brought by its members. Such challenges require time and resource to deal with, and can prevent the SRA from taking targeted compliance activity in relation to economic crime.
	This measure will ensure that the SRA has the necessary proactive information request powers to fulfil its obligations to effectively oversee and promote the prevention and detection of economic crime.