UK law firms get ready for crackdown on money laundering

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UK law firms are bracing themselves for a money-laundering crackdown as ministers race to improve the City’s reputation ahead of a fresh financial crime review.The Financial Conduct Authority (FCA) has been designated as the new anti-money laundering watchdog for the legal sector, in a move that experts warn could result in “sharper” penalties and ultimately reshape the industry.The decision to consolidate regulation, which at present is spread across nine separate supervisors, is part of the government’s wider efforts to combat the UK’s reputation as a hub for “dirty money”.The National Crime Agency estimates that £100bn is being laundered through or within the UK every single year, with the help of enabling entities such as law firms.The City’s poor reputation for money laundering came into focus in 2018, following an assessment by the Financial Action Task Force (FATF), the Paris-based global crime watchdog.

Its report highlighted significant weaknesses in the UK’s anti-money laundering supervisions and called on the government to “strengthen” oversight, particularly across the accounting and legal sectors.The UK’s national risk assessment on money laundering and terrorist financing has also classed the UK legal sector as “high risk” for every one of its assessments since 2017.Now, with a fresh FATF review looming in August 2027, government reforms are being pushed into a high gear.“The timing of this shift is no coincidence,” Priya Giuliani, a financial crime investigator and partner at the consultancy HKA, said.While there is currently no deadline for the changing of the guard, Giuliani said the “urgency is there for the UK to present a credible, consistent, and effective supervisory system to FATF by August 2027”.

The FCA’s pending role as money-laundering supervisor for the professional services sector – which also includes accounting firms and trusts – follows a two-year government review that found inconsistent oversight, duplication across more than 20 regulators, and gaps in information shared with police.For the legal sector alone, the FCA will be taking over the responsibilities of nine supervisors, most notably the Solicitors Regulation Authority (SRA).Giuliani says that while the SRA has historically taken a more “collaborative, guidance-led approach”, the FCA will have “sharper swords” to punish wrongdoing.The SRA has limited powers, and a £25,000 cap on fines, although larger fines can be imposed if the SRA refers firms to tribunal.In the year to April, the SRA issued 86 fines worth £1.

5m under its anti-money laundering powers, with penalties ranging from £1,520 to £300,000.Its largest fine was on par with the FCA’s smallest – the latter issued six anti-money laundering fines last year, ranging from £289,000 to £39.3m and totalling £82m.The FCA’s takeover could also lead to law firms facing large hurdles to start operating in the UK, HKA said.Figures it has gathered show the FCA rejected 44% of the 275 applications it received in the 2023-24 financial year, while the SRA accepted all 218 firms that applied.

“The FCA brings sharper scrutiny, broader powers, and a data-driven lens,”Giuliani said.“Legal firms must be ready.”Steve Smart, the executive director of enforcement and market oversight at the FCA, said: “Fighting financial crime is a priority for the FCA and we have experience in anti-money laundering supervision which we will bring to bear.We intend to take a data-led and proportionate approach – with a focus on partnering with firms to identify and disrupt crime.”
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How to make garlic bread – recipe | Felicity Cloake's Masterclass

Once upon a time, an ex and I used to throw an annual party – a non-chic affair with a recycling bin full of ice and bottles – where the star, and the thing that everyone really came for, was the garlic bread: 10 or 15 loaves of the stuff, always demolished while still dangerously hot from the oven. I believe the original recipe was Nigel Slater’s; this is my tweaked version.Prep 15 min Cook 25 min Makes 1 loaf1 ciabatta loaf, or baguette – a slightly stale one, ideally80g room-temperature butter, salted or unsalted4 garlic cloves 1 small bunch parsley, or another herb of your choice (see step 6)40g parmesan, or similar hard cheese, finely grated, plus a little extra for toppingA squeeze of lemon juice, to finishSalt, to taste (if using unsalted butter)You can prepare this ahead of time (and you should, too, if you want to get the smell of garlic off your hands before the festivities begin) – the day before, or even up to a month in advance (in which case, wrap, freeze and bake straight from frozen, though, if you do so, add five to 10 minutes to the cooking time). In both cases, wrap it well in foil before storing.While day-old bread is easier to butter, it must still be soft enough to absorb large quantities of butter (anything too dense or crisp will repel it) and robust enough to maintain its structural integrity once soaked

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Festive finger food: how to use Christmas leftovers to make New Year’s Eve canapes | Kitchen aide

What canapes can I make for New Year’s Eve with my Christmas leftovers that will still feel special?Ella, via email Finger food needn’t be fancy, so New Year is a good opportunity to clear the decks. The only real rule is to keep things to just one bite – no one wants to be manoeuvring a fork, after all. “People just want a big hug of comfort food with a decadent twist,” says Max Bergius, founder of Secret Smokehouse in east London. “If you’ve got a bit of smoked salmon left, get that on blinis and top with lumpfish caviar, which is only £2-£3 per 50g pot.” Mini fishcakes would also be just the ticket: “Whether you’ve got leftover smoked haddock or hot smoked salmon, fold it through mashed potato, mix with dill, lemon and fried leeks, then roll in panko and deep-fry

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Rukmini Iyer’s quick and easy party platters: halloumi with pineapple salsa and za’atar carrots with labneh | Quick and easy

This hot halloumi platter is such a crowdpleaser that it’s worth making with two blocks of halloumi, even for a smaller group. I like to include this as part of a spread of mixed hot and cold dishes – a jolly, festive update on cheese and pineapple on a stick (which is admittedly hard to improve on). Then, a high-impact, low-effort dish: za’atar roast carrots with labneh and pistachio. On a whim, I hung a carton’s worth of plain yoghurt in muslin for labneh the other week, and now I can’t stop – it takes just 30 minutes for a soft-set, which is what you want here (for a firmer set, leave it to hang for an hour).To get ahead, keep the cut pineapple in a large bowl in the fridge, the chopped mint and chilli in a small bowl, and the red onion and lime juice in another small bowl

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Jose Pizarro’s recipe for caramelised brussels sprout and panceta montaditos

Brussels sprouts are perhaps not the first thing you think of when you think about Spanish food, but they do have a little history in my homeland. They arrived in Spain in the 16th century, through trade with Flanders, and were often paired with pork, which we love. Here, however, I caramelise them with onion, thyme and sweet vinegar, then serve on crisp baguette with soft cheese and pine nuts. A small bite with big flavour, and just right with a glass of oloroso – perfect for festive times.Prep 15 min Cook 35 minMakes About 20 canapes1 tbsp olive oil 125g sliced panceta (Spanish bacon), or pancetta, finely chopped1 medium onion, peeled and finely sliced1 garlic clove, peeled and finely sliced300g brussels sprouts, finely sliced3 sprigs fresh thyme, leaves stripped2 tbsp sweet apple vinegar 2 tbsp soft light brown sugar Salt and black pepper 20 slices fresh baguette 150-200g soft curd cheese, whipped, or whipped cream cheese50g pine nuts, toastedHeat the oil in a large frying pan, then fry the chopped panceta for about five minutes, until golden and crisp

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Tasting 291 Australian supermarket products has taught me there’s no correlation between price and deliciousness

After a year of taste tests, Nicholas Jordan has learned never to judge a food by its packet – including the cooking instructionsImagine going to a work Christmas party and being greeted not by your current workmates and bosses but by everyone you’ve ever worked with. Imagine the mix of dread, nostalgia and excitement that would bring on. That’s how I feel every time I walk into Coles Broadway.After trying 291 supermarket products for 14 taste tests this year (one more than last year’s haul) I feel as if I know all the characters in there and, despite only having relatively short interactions with many, I have strong opinions about all of them.I want to tell everyone my opinions but supermarkets aren’t particularly welcoming places for giddy soap-box speakers

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Drinks ideas to get your NYE party fuelled

Oh, you thought it was all over? After all the carolling, gifting and tree-ing (not to mention the eating and drinking) of the actual Christmassy bit, it feels almost cruel to have to do it all again, and on – in my opinion – one of the most stressful nights of the year: New Year’s Eve.The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.If you’re not paying over the odds and going out, with long queues and stressed-out staff, you’re the stressed-out one yourself