Lawyers and AML/CTF enforcement: Two decades of lessons from the UK

Episode Summary: Most AML/CTF enforcement action against lawyers does not stem from deliberate wrongdoing, but small everyday decisions that go unchallenged and unchecked. This episode explores UK enforcement cases to show how Australian practitioners can recognise risk earlier, strengthen compliance and avoid the mistakes of their UK counterparts. Guest: Dr Katie Benson, Senior Lecturer in Criminology, University of Manchester Associate Fellow, RUSI Centre for Finance and Security, with a background in UK law enforcement Expert in the role of lawyers in facilitating illicit finance and regulatory responses www.linkedin.com/in/katie-benson-b36029a4/ | research.manchester.ac.uk/en/persons/katie.benson Host: Artemis Evangelidis, Law Institute of Victoria [email protected] | www.linkedin.com/company/law-institute-of-victoria Episode Overview: Drawing on UK’s AML/CTF enforcement cases against lawyers, this episode examines how the decisions and actions in day-to-day legal practice can lead to serious legal consequences. It highlights key risk areas, including client account compliance, property transactions and source of funds due diligence. Dr Katie Benson brings a research-driven perspective, grounded in case analysis and industry interviews, to explain how situational pressures and organisational context shape decision making. For lawyers preparing for AML/CTF compliance Australia, this episode provides practical guidance on identifying early warning signs, avoiding complacency and strengthening firm-wide risk management practices. Topics & Timestamps: 00:04 Intro and AML reforms context 01:02 Types of AML enforcement cases involving lawyers 03:00 Criminal and regulatory pathways 05:00 High-risk areas including property and client accounts 09:27 Differences in culpability and enforcement outcomes 14:58 Red flags and suspicious client behaviour 19:45 Practical guidance for Australian lawyers 23:31 Final reflections on risk and accountability Key Takeaways: AML/CTF enforcement action against lawyers in the UK does not often stem from deliberate misconduct UK cases show client accounts and property transactions are consistent high-risk areas Source of funds and source of wealth checks are critical and increasingly scrutinised Demonstrating active compliance, not just policies on paper, is essential[IF1] Situational pressures and firm culture influence how lawyers respond to risk Early intervention and questioning client narratives can prevent escalation Compliance must be embedded across the firm, not left to individuals Resources & Links: LIV AML/CTF Hub – Central resource for Tranche 2 readiness and compliance guidance | www.liv.asn.au/amlhub LIV Compliance and Professional Standards – Practical guidance on regulatory obligations for lawyers | www.liv.asn.au/compliance SRA AML Annual Report – UK enforcement trends and insights into compliance failures | www.sra.org.uk/sra/research-publications/aml-annual-report-2023-24/ University of Manchester profile – Dr Katie Benson – Research overview and publications | research.manchester.ac.uk/en/persons/katie.benson AUSTRAC AML/CTF guidance – Australian regulatory framework and expectations | www.austrac.gov.au Dr Katie Benson’s 2020 book, Lawyers and the Proceeds of Crime From money laundering to illicit finance – Comparative research on evolving AML regulation in the UK and Australia (2025) | www.tandfonline.com/doi/full/10.1080/10345329.2024.2443702#abstract Complementarity, tension and proportionality in the anti-money laundering regulation of law firm client accounts (2026) | link.springer.com/article/10.1007/s10611-025-10252-3 Occupation, organisation, opportunity and oversight: law firm client accounts and (anti-)money laundering (2024) | link.springer.com/article/10.1007/s10610-024-09581-1 About This Podcast: Cross-Examined is a new podcast from the Law Institute of Victoria. Tune in to hear experts discuss hot topics in the law and the changes shaping the legal profession. Regular episodes will cover everything from AI and cyber threats to ethical dilemmas, workplace taboos and practice management insights. This podcast is recorded on the traditional lands of the Wurundjeri people of the Kulin Nation. The Law Institute of Victoria acknowledges the Traditional Custodians of Country across Australia. We pay our respects to Elders past and present. Disclaimer: This podcast is for informational purposes only and is not intended to replace professional legal advice. The views expressed in this podcast do not necessarily reflect the views of the Law Institute of Victoria (LIV). The LIV is not responsible for any losses, damages or liabilities that may arise from the use of this podcast. Listeners should seek independent legal advice for their matters. Production Information: Produced by: The Law Institute of Victoria Producer and audio editor: Garreth Hanley Music: Garreth Hanley Copy and show notes: Louise Surette Connect With Us: Email: [email protected] Website: www.liv.asn.au LinkedIn: www.linkedin.com/company/law-institute-of-victoria Apple Podcasts: podcasts.apple.com/au/podcast/cross-examined/id1858765728 Spotify: open.spotify.com/show/0zvyk5xia4wYv9YWcXphgV