Top stories this month
- Andy Burnham has become prime minister of the United Kingdom. In this article, we review the compliance scorecard of Keir Starmer, and look ahead to how the Burnham ministry may affect corporate compliance and regulation.
- In a significant change to AML rules for all regulated entities, including law firms, the Money Laundering and Terrorist Financing (Amendment) Regulations 2026 are now in force.
- The government announced major new modern slavery compliance rules. This will require more in depth statements from companies with fines of up to 1% revenue.
- The Employment Rights Act has an updated implementation timeline. The new sexual harassment ‘all reasonable steps’ provisions come into force 30 October 2026. Previously it was 1 October.
UK regulatory update
With changes to sexual harassment law in Great Britain coming into force from 30 October 2026, we look at what the law actually says on preventing sexual harassment, and what employers will need to change under the Employment Rights Act.
Meanwhile our research shows that one in five UK managers have received no sexual harassment training. This is particularly worrying as managers are often the first person someone will disclose an incident to, and training is a key reasonable step.
Given the significance of the changes coming into force on sexual harassment, and the lack of concrete guidance on what ‘all reasonable steps’ actually means, we have outlined what reasonable steps could look like for different types of employers. Plus, we’ve collated frequently asked questions on this subject.
As the Employment Rights Act continues its implementation across 2026 and 2027, we’ve collated the most frequently asked questions about what the Act means for compliance.
Ofcom has launched a series of investigations and fines against US website 4Chan, in a major test of transatlantic regulation. The key question for companies to watch will be can a UK regulator fine a US company that hasn’t broken US law?
HMRC have announced a new ‘name and shame’ policy that could impact businesses caught up in sanctions issues. Part of the penalty will include a public naming which can cause reputational damage, potentially at a much greater value than a simple monetary penalty.
On sanctions, the UK authority OFSI and the US OFAC have produced joint guidance, showing a side by side comparison of the US and UK financial sanctions regime. While this is not harmonisation, it is intended to support businesses on either side of the Atlantic.
Neurodiversity discrimination continues to be a growing risk to firms of all sizes. With the Employment Rights Act changes raising the risk of a workplace dispute becoming an employment tribunal, becoming neurodiversity friendly is a compliance imperative.
EU regulatory update
The EU has unveiled a new package of sanctions against Russia and Russian interests, including dozens of new individuals and hundreds of companies across crypto, energy and shipping.
The EU has also given the green light to reforms of the EU AI Act in the final Omnibus package. High risk AI system rules have been postponed until August 2028.
US regulatory update
Significant changes to HIPAA’s Security Rule are on the way. The landmark US law protecting health information is set for additional cyber security requirements and data protection rules that all covered entities will have to follow from 2028.
A federal judge has ruled that documents created by a public AI, Claude, are NOT protected by attorney-client privilege. A defendant used Claude to analyse his case and shared it with his lawyers, and these are not protected.
AML rules are due for a shakeup in the US, with FinCEN publishing its changes in April and the Federal Reserve now coming out with its proposed changes under the Bank Secrecy Act. Meanwhile Merrill Lynch received a massive $7.5m pentalty for AMl failures by the SEC.
The legal market
Our latest AML core group was held in person in London to wide success, with legal sector professionals coming together for a lively discussion and debate on the future of AML regulation, moderated by VinciWorks in partnership with Compliance Office.
A supposedly ‘AI law firm’ regulated by the SRA has secured a successful claim for a client at Wandsworth County Court. Although the AI firm had the wherewithal to instruct a barrister.
Meanwhile the CPS received a slap on the wrist for submitting false information to the High Court, blaming AI for the mistake. The judge accepted their apology without further sanction, but others may not be so lucky.
Strangely enough, the UK Jurisdiction Taskforce has concluded that in some circumstances, a solicitor may be negligent for NOT using AI when a reasonable competent solicitor may have done so.
Conveyancing firms are facing record fines for AML compliance, with a range of fines and penalties exceeding half a million pounds in this year alone.
A probate solicitor was sentenced to nearly 4 years for stealing over a million pounds from client accounts. The case came to light after the solicitor forged a client’s signature in a letter to HMRC.
Around the world
Australia’s AML changes known as Tranche-2 have come into force. THis requires a large number of firms including legal and accounting to enrol with AUSTRAC and implement AML procedures.
China has introduced a new law on AI, with a tough, EU style approach. It targets human-like AI, and seeks to regulate the relationship between people and robots.
Product updates
With a wave of changes coming to FCA compliance, VinciWorks have launched a fully updated and refreshed FCA compliance suite, with training covering key areas like non-financial misconduct and more.
VinciWorks has launched four additional Conversational Learning courses designed for the legal sector, covering data protection, bribery, gifts and tax evasion.
In Omnitrack, form field descriptions are now easier to customise with colour and highlight styling, and uploaded files show their upload date for easier review. Plus, sections in forms and submissions are now easier to manage — admins can set sections to collapse by default, and everyone can collapse or expand all sections in a submission with one click.
Astute has also received an update, improving loading speed. From logging in to moving between pages, Astute continues to respond noticeably faster.
New guides
Where can I find more?
Follow our daily blog. Check out our new guides. Subscribe to the podcast.
Top stories this month
- Andy Burnham has become prime minister of the United Kingdom. In this article, we review the compliance scorecard of Keir Starmer, and look ahead to how the Burnham ministry may affect corporate compliance and regulation.
- In a significant change to AML rules for all regulated entities, including law firms, the Money Laundering and Terrorist Financing (Amendment) Regulations 2026 are now in force.
- The government announced major new modern slavery compliance rules. This will require more in depth statements from companies with fines of up to 1% revenue.
- The Employment Rights Act has an updated implementation timeline. The new sexual harassment ‘all reasonable steps’ provisions come into force 30 October 2026. Previously it was 1 October.
UK regulatory update
With changes to sexual harassment law in Great Britain coming into force from 30 October 2026, we look at what the law actually says on preventing sexual harassment, and what employers will need to change under the Employment Rights Act.
Meanwhile our research shows that one in five UK managers have received no sexual harassment training. This is particularly worrying as managers are often the first person someone will disclose an incident to, and training is a key reasonable step.
Given the significance of the changes coming into force on sexual harassment, and the lack of concrete guidance on what ‘all reasonable steps’ actually means, we have outlined what reasonable steps could look like for different types of employers. Plus, we’ve collated frequently asked questions on this subject.
As the Employment Rights Act continues its implementation across 2026 and 2027, we’ve collated the most frequently asked questions about what the Act means for compliance.
Ofcom has launched a series of investigations and fines against US website 4Chan, in a major test of transatlantic regulation. The key question for companies to watch will be can a UK regulator fine a US company that hasn’t broken US law?
HMRC have announced a new ‘name and shame’ policy that could impact businesses caught up in sanctions issues. Part of the penalty will include a public naming which can cause reputational damage, potentially at a much greater value than a simple monetary penalty.
On sanctions, the UK authority OFSI and the US OFAC have produced joint guidance, showing a side by side comparison of the US and UK financial sanctions regime. While this is not harmonisation, it is intended to support businesses on either side of the Atlantic.
Neurodiversity discrimination continues to be a growing risk to firms of all sizes. With the Employment Rights Act changes raising the risk of a workplace dispute becoming an employment tribunal, becoming neurodiversity friendly is a compliance imperative.
EU regulatory update
The EU has unveiled a new package of sanctions against Russia and Russian interests, including dozens of new individuals and hundreds of companies across crypto, energy and shipping.
The EU has also given the green light to reforms of the EU AI Act in the final Omnibus package. High risk AI system rules have been postponed until August 2028.
US regulatory update
Significant changes to HIPAA’s Security Rule are on the way. The landmark US law protecting health information is set for additional cyber security requirements and data protection rules that all covered entities will have to follow from 2028.
A federal judge has ruled that documents created by a public AI, Claude, are NOT protected by attorney-client privilege. A defendant used Claude to analyse his case and shared it with his lawyers, and these are not protected.
AML rules are due for a shakeup in the US, with FinCEN publishing its changes in April and the Federal Reserve now coming out with its proposed changes under the Bank Secrecy Act. Meanwhile Merrill Lynch received a massive $7.5m pentalty for AMl failures by the SEC.
The legal market
Our latest AML core group was held in person in London to wide success, with legal sector professionals coming together for a lively discussion and debate on the future of AML regulation, moderated by VinciWorks in partnership with Compliance Office.
A supposedly ‘AI law firm’ regulated by the SRA has secured a successful claim for a client at Wandsworth County Court. Although the AI firm had the wherewithal to instruct a barrister.
Meanwhile the CPS received a slap on the wrist for submitting false information to the High Court, blaming AI for the mistake. The judge accepted their apology without further sanction, but others may not be so lucky.
Strangely enough, the UK Jurisdiction Taskforce has concluded that in some circumstances, a solicitor may be negligent for NOT using AI when a reasonable competent solicitor may have done so.
Conveyancing firms are facing record fines for AML compliance, with a range of fines and penalties exceeding half a million pounds in this year alone.
A probate solicitor was sentenced to nearly 4 years for stealing over a million pounds from client accounts. The case came to light after the solicitor forged a client’s signature in a letter to HMRC.
Around the world
Australia’s AML changes known as Tranche-2 have come into force. THis requires a large number of firms including legal and accounting to enrol with AUSTRAC and implement AML procedures.
China has introduced a new law on AI, with a tough, EU style approach. It targets human-like AI, and seeks to regulate the relationship between people and robots.
Product updates
With a wave of changes coming to FCA compliance, VinciWorks have launched a fully updated and refreshed FCA compliance suite, with training covering key areas like non-financial misconduct and more.
VinciWorks has launched four additional Conversational Learning courses designed for the legal sector, covering data protection, bribery, gifts and tax evasion.
In Omnitrack, form field descriptions are now easier to customise with colour and highlight styling, and uploaded files show their upload date for easier review. Plus, sections in forms and submissions are now easier to manage — admins can set sections to collapse by default, and everyone can collapse or expand all sections in a submission with one click.
Astute has also received an update, improving loading speed. From logging in to moving between pages, Astute continues to respond noticeably faster.
New guides
Where can I find more?
Follow our daily blog. Check out our new guides. Subscribe to the podcast.
