Welcome to the first RACO Roundup of 2026! We’re kicking off the new year with essential updates to keep you ahead and informed in the world of law and compliance.
As we enter 2026, regulatory scrutiny continues to intensify. The SRA closed 2025 with significant enforcement activity, and the upcoming transition to FCA supervision for AML matters means firms must ensure their compliance frameworks are robust and ready.
Below, you will find the most recent headlines selected by our compliance experts, followed by a Security Section with the latest scam alerts to help protect you and your clients in the new year.
SRA Ends 2025 With Over £50k in Financial Penalties: What It Means for Law Firms in 2026
The Solicitors Regulation Authority closed 2025 with strong enforcement activity, issuing over £50,000 in fines to three law firms for AML compliance breaches. The penalties highlight critical failures in firm-wide risk assessments, policies and procedures, and client/matter risk assessments required under the Money Laundering Regulations 2017.
With the Financial Conduct Authority set to assume AML supervision responsibilities in 2026, these enforcement outcomes send a clear message: regulatory compliance remains a priority. Firms must invest in proper risk assessments, up-to-date policies, documented procedures, and a culture of compliance to meet the expectations of both current and future supervision frameworks.
Read the full story here
Commercial Property Transactions: AML Risks Firms Should be Aware Of
Operation Machinize 2, a coordinated National Crime Agency crackdown conducted throughout October 2025, exposed widespread criminal activity operating through UK high street businesses. The results were stark: 2,734 premises targeted, 924 arrests, over £10.7 million in suspected criminal proceeds seized, and more than £2.7 million worth of illicit commodities destroyed.
For law firms handling commercial conveyancing and property transactions, these figures represent more than statistics. They demonstrate that businesses operating from commercial premises could be fronts for money laundering. Enhanced due diligence is essential when dealing with cash-intensive businesses, and the upcoming FCA supervision transition makes robust, documented CDD processes more critical than ever.
Read the full story here
Security Section
Latest SRA Scam Alerts
Warning: Emails Misusing Shepherd and Wedderburn LLP
Date: 20 January 2026
The Scam: Emails falsely claiming to be from Shepherd and Wedderburn LLP regarding copyright infringement matters. The emails misuse the name of genuine solicitor Stephen D’Amore.
Fraudulent Contact Details:
• Email: travhearkibbmel1989@gmail.com
• Name Used: Steve D’Amore (claiming to be senior legal counsel)
• Phone: +1 (212) 541-2000
• Address: 50 South Sixth Street, Suite 1500, Minneapolis, MN 55402-1498, USA
Genuine Details:
• Firm: Shepherd and Wedderburn LLP (SRA ID 447895)
• London Office: 1-6 Lombard Street, London, EC3V 9AA
• Phone: 020 7429 4900
• Email Domain: @shepwedd.com
• Website: www.shepwedd.com
The genuine firm and solicitor Stephen D’Amore have no connection to the fraudulent emails. If you receive similar correspondence, verify directly with the genuine firm using established contact details.
Read the full alert here
Warning: Email Misusing Charlotte Bee’s SRA ID and Napthens LLP
Date: 21 January 2026
The Scam: An email misusing the SRA ID number of genuine solicitor Charlotte Bee and the name of Napthens LLP. The email refers to reporting an alleged “invalid and unlawful annual general meeting” and requests acknowledgment.
Fraudulent Contact Details:
• Email: ivorystansfield.napthens@mail.co.uk
• Name Used: Ivory Stansfield (claiming to be charity law solicitor)
• Misuses SRA ID: 663144 (genuine ID of Charlotte Bee)
Genuine Details:
• Solicitor: Charlotte Bee (SRA ID 663144) – genuine employee of Napthens LLP
• Firm: Napthens LLP (SRA ID 462103)
• Head Office: 7 Winckley Square, Preston, PR1 3JD
• Phone: 01772 888444
• Email Domain: @napthens.co.uk
The SRA does not authorise anyone named “Ivory Stansfield.” The genuine firm and Charlotte Bee have no connection to this fraudulent email. Always verify correspondence directly with firms using established contact methods.
Read the full alert here
Been Contacted by a Scammer?
If you’ve been contacted by any of these scams or received suspicious correspondence claiming to be from a law firm, always verify directly using established contact details before responding or taking any action.
View more scam alerts here
BEEN CONTACTED?
Here’s What to Do…
When a firm’s or individual’s identity has been copied or cloned, due diligence is necessary. If you receive correspondence you believe to be suspicious, you should conduct your own due diligence by checking the authenticity of the correspondence by contacting the law firm directly by reliable and established means.
You can also contact the SRA directly to find out if individuals or firms are regulated and authorised by the SRA and verify an individual’s or firm’s practising details. Other verification methods, such as checking public records (e.g. telephone directories and company records), maybe required in other circumstances.
Reach Out to RACO
We at RACO are always at hand to provide tailored guidance to help you make the most informed and beneficial decisions. We help you understand the recurrent regulatory shifts and work with you to provide solutions. With our team of professional specialists and our renowned legal expertise, we can work with your firm to always ensure you are never left unprepared in the wake of legal changes or cyber threats.
For more information on how we can help, call our consultants on 0203 985 8550 or email us at info@regulationandcomplianceoffice.co.uk
