New research reveals pressure on law firm compliance teams

Thirdfort research shows compliance leaders go above and beyond amid tough conditions

New research from client due diligence platform Thirdfort reveals that law firm compliance teams are under pressure. Some 32% of compliance leaders in law firms surveyed reported having to work overtime at least two days a week to handle issues related to anti-money laundering compliance requirements. Just over a quarter (26%) of compliance leaders say their workload is overwhelming.

Compliance leaders are operating in challenging conditions. Money laundering costs the UK economy some £100bn annually, while the UK Government reportedly lost £21bn to fraud between 2020-2022 according to the National Audit Office.  Against this backdrop, the SRA and other regulators are stepping up their oversight of law firms and are issuing fines for regulatory failures.

The research from Thirdfort also shows that some 70% of law firm compliance leaders say the role of compliance is well understood within their firm. Despite this however, almost as many compliance leaders expect their firm to decrease investment in compliance as increase it (38% compared to 40%).

Olly Thornton-Berry, co-founder and CEO at Thirdfort, said: “The compliance burden on law firms continues to increase. Compliance leaders are doing their best and often going above and beyond to meet these regulatory requirements. However, fighting fraud and money laundering shouldn’t require regular overtime and negatively impact your personal life. Since many compliance leaders we surveyed don’t expect budget increases, they must explore other efficiency opportunities. Technology can reduce time spent on client due diligence, allowing compliance leaders to focus on assessing and mitigating risk in more complex cases. ”

Thirdfort’s mission is to protect society from fraud and money laundering. The platform offers simple and secure client due diligence checks for regulated professionals, through automated ID verification, anti-money laundering and Source of Funds checks on individuals and businesses in life’s big moments such as buying property, drafting a will or instructing a financial advisor.