Over two in five (42%) regulated firms have reported a rise in financial crime attempts in the past six months, with over a quarter (26%) stating that they have been a victim, SmartSearch has found.

Research by the anti-money laundering (AML) solutions provider found that 48% of legal professionals, solicitors and conveyancers surveyed reported a rise in financial crime attempts in 2023, compared to 34% in the same period in 2022.

Estate agents and other property professionals reported the biggest increase in financial crime, jumping from 17% in 2022 to 37% in 2023.

However, firms in the finance sector reported a decrease in financial crime (54% in 2022), although 41% did see a rise in attempts. Slightly more accountancy firms (42%) made the same admission.

The number of property firms (29%) that found themselves prey to financial crimes increased by almost five times compared to 2022, while finance firms falling victim to these crimes more than doubled, from 14% to 33% year-on-year.

Managing director for SmartSearch and qualified lawyer, Martin Cheek, said: "As the gatekeepers of the UK’s financial system, regulated firms in these sectors are on the frontline in the ongoing fight against financial crime.

"As attempts increase and more criminals look to exploit weaknesses to launder money and legitimise illicit funds, regulated firms must remain proactive and ensure their compliance processes are robust enough to withstand such attempts.

"For those firms that have already become a victim of money laundering or financial crime, I cannot think of a higher priority this year. As the threat level has risen, many firms have taken the opportunity to implement a digital compliance strategy, utilising the latest technology, along with real-time data to transform this onerous task into a seamless part of client onboarding and ongoing monitoring."

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