What Conveyancers Need to Look Out For in 2026: Emerging Risks in Anti Money Laundering and Sanctions

As the regulatory landscape continues to evolve, conveyancers entering 2026 face a wide range of new and developing risks linked to financial crime, sanctions, and anti money laundering obligations. Property transactions remain a prime target for criminals seeking to place or disguise illicit funds. 

It is essential that conveyancers remain informed, vigilant, and prepared for the challenges ahead. This blog outlines the main trends that are expected to shape the year and what firms should be ready to identify and respond to.

Growing Complexity in Global Sanctions

Sanctions regimes across the world are expanding rapidly, particularly in relation to political conflict, cyber security concerns, and corruption. Many countries are applying broader sanctions that target entire sectors rather than specific individuals. Conveyancers should expect greater scrutiny of clients who have any connection to high risk jurisdictions. There is also a notable rise in secondary sanctions, which means that a conveyancer could risk liability even where the client is not directly subject to sanctions but has some form of indirect connection.

The Increasing Presence of Cryptoassets

Cryptoassets are becoming more common in property transactions as clients convert digital holdings into traditional bank funds. This brings a number of challenges. Funds may originate from anonymous digital wallets or unregulated trading platforms. Some clients may be unable to show how they obtained their crypto. Others may route transactions through privacy services designed to obscure the trail. In 2026, regulators are expected to place more emphasis on verifying the origin of digital wealth, meaning conveyancers will need to request transaction histories, exchange information, and evidence of legitimate acquisition.

New Forms of Identity Fraud Driven by Artificial Intelligence

The rapid development of artificial intelligence has enabled fraudsters to create increasingly convincing false identities. Fake documents can now be generated with high levels of accuracy and deepfake technology can replicate a person’s likeness during video calls. As remote onboarding continues to grow, these risks will only increase. Firms will be expected to adopt more advanced methods of verifying identity, including biometric checks and real time liveness testing to ensure that the person is genuine.

Rising Use of Complex Corporate Structures

Criminals are making greater use of company structures spread across multiple countries. These may include complex chains of ownership, trusts, or nominee arrangements designed to obscure the person who ultimately controls the funds. Conveyancers will face stricter requirements to confirm beneficial ownership and to obtain evidence of a company’s source of wealth. Any last minute changes to corporate ownership shortly before a transaction should be treated as a significant warning sign.

The Growth of Environmental and Energy Related Financial Crime

New investment schemes linked to environmental credits and renewable energy are emerging as opportunities for criminals to disguise illicit wealth. These schemes can appear legitimate but may be used to funnel large sums of money quickly. Conveyancers should pay close attention to funds linked to unfamiliar environmental investment products or overseas energy projects.

Increased Reliance on Intermediaries and Third Parties

There is a noticeable rise in the use of intermediaries who act on behalf of clients. These individuals may present themselves as introducers, consultants, or professional advisers. However, reliance on their assurances can put a firm at serious risk if proper checks are not undertaken. Regulators expect firms to complete their own due diligence, regardless of who presents the client. Any reluctance from an intermediary to share information should be treated with caution.

Rapid Cross Border Payments

Fast international payments are now easier than ever, and criminals take advantage of this by moving money quickly between accounts. In property transactions this might appear as a series of unexpected deposits from unfamiliar overseas accounts. Sudden movements of large sums shortly before completion should raise concerns. Conveyancers will be expected to examine the timing, origin, and legitimacy of funds in far greater detail.

Clients Connected to Conflict Zones or Public Office

There is growing regulatory focus on individuals who may have links to political conflict, military organisations, or high value public roles. Even if they are not officially classified as politically exposed persons, these clients may still present heightened risks. Any involvement with conflict areas or state controlled entities should be explored carefully and documented thoroughly.

Property Purchases Funded by Cybercrime Proceeds

Cybercrime continues to grow, and criminals increasingly use property purchases as a stable way to store illegal profits. These funds may come from online fraud, phishing schemes or ransomware attacks. Warning signs include very young clients with unusually high levels of unexplained wealth, funds arriving from modern digital payment platforms, or a vague explanation of their financial background.

The Increasing Role of the Financial Conduct Authority

One of the most significant changes on the horizon is the expected expansion of the Financial Conduct Authority’s role in overseeing activities that previously fell largely under the responsibility of the Solicitors Regulation Authority. This change reflects the growing concern that property transactions are becoming a key target for serious financial crime. The Financial Conduct Authority is known for its more intensive style of supervision and its strong focus on risk based regulation. Conveyancers should expect stricter expectations around client due diligence, record keeping, and the assessment of financial crime exposure. This shift is likely to result in more direct scrutiny of firms and a greater emphasis on compliance culture throughout the entire practice.

A Tougher Enforcement Environment

Finally, 2026 will bring more regulatory inspections, more in depth audits, and stronger consequences for non compliance. Authorities are placing greater emphasis on firm wide risk assessments, detailed audit trails, and evidence of ongoing monitoring throughout the course of the transaction. Poor oversight or incomplete record keeping is likely to result in significant penalties.