The importance of your business staying compliant with anti-money laundering policies

Many business owners may presume that money laundering is a problem for banks or large corporations.

However, small and medium-sized businesses across the UK can be targeted by criminals seeking to disguise illegal funds.

Businesses that fail to put proper Anti-Money Laundering (AML) controls in place can be subject to fines and criminal prosecution.

Our criminal defence specialist, Jeremy Sirrell, explains your legal responsibilities and how to protect your business.

What is anti-money laundering?

AML refers to the laws and policies created to prevent criminals from cleaning illicit money through legitimate businesses.

In the UK, AML rules mainly stem from the Money Laundering Regulations, the Proceeds of Crime Act 2002 and the Terrorism Act 2000.

Criminals typically launder money through three stages:

1. Placement – introducing illegal funds into the financial system
2. Layering – moving funds through transactions to blur their origins
3. Integration – reintroducing the money as legitimate assets or income

Businesses can unknowingly become involved in these stages, so keeping strict controls in place is important.

What are AML checks?

If your business is regulated, you must conduct formal AML checks, including Knowing Your Customer (KYC) and verifying their identity and address.

Customer due diligence is important and so is completing deep checks on high-risk clients or suspicious transactions.

Businesses should try and gain an understanding of where the money originates from and screen customers against sanctions or watchlists.

Ongoing monitoring and looking out for unusual activity or transaction patterns can help protect your business.

How to keep your business compliant?

To comply with AML rules, businesses should conduct a formal risk assessment of customers, services, products and delivery channels.

Business owners should create a written AML policy outlining their responsibilities and keeping a detailed record of due diligence and risk assessment completed.

An AML policy should also cover customer checks, the ongoing monitoring obligations and what to do if a money-laundering activity occurs.

Businesses can also prepare internally by appointing a money laundering reporting officer and providing staff training to recognise suspicious transactions.

Regular policy reviews are important, especially if your business model or client base changes, and can show compliance if you are ever audited or investigated.

Failure to comply can result in:

• Investigation by HMRC or FCA
• Fines
• Criminal charges, including imprisonment
• Forced closure of your business
• Loss of client trust and damage to your reputation

Even unintentional breaches can lead to penalties, so reaching out for legal guidance early on can help protect your business.

How can we help you prepare?

Whether you handle client money or process large transactions, understanding your legal duties under the Money Laundering Regulations is crucial.

Businesses must remain alert to unusual activity, such as cash purchases or unexpected rises in spending, and report suspicious activity promptly.

Our team can help you to take the first steps to stay compliant by reviewing or creating AML policies and risk assessments.

With the right legal guidance, you can limit your business’s exposure to risk and operate confidently.

For expert advice on AML compliance, contact our expert team today.

For many commercial property owners, an important arrangement to consider is whether an occupier should be granted a lease or a licence.

Although these documents may seem similar, the legal consequences are significantly different and getting it wrong can put landlords at risk of dispute or loss of control over their property.

Our Commercial Real Estate Solicitor, Lorena Gomez Sutherland, explains the distinction and how commercial property owners can protect their long-term interests.

What is a lease?

A lease is a legally binding agreement that grants a person or entity exclusive possession of a property for a fixed or clearly defined period of time and for a set rent.

It includes obligations on both the landlord and the tenant and, in some cases, will be registrable at the Land Registry.

In simple terms, a lease allows a tenant to use and possess the land or building and control the space demised by the lease (subject to any reservations).

A tenant will often benefit from the same rights that the landlord benefits from under its title, for example, a right to connect to utilities conduits under adjoining property or a right of way over an estate road.

A tenant can exclude its landlord and third parties from the land, except where the landlord has reserved rights of entry to the property, for example, to carry out repairs or valuations.

As the lease creates a proprietary interest in the land, a tenant may have the right to assign the lease or sublet the property. Assigning the lease transfers the tenant’s right of exclusive possession to a new tenant.

Whereas an underlease, or sublease, creates another layer in which the tenant is still accountable to the landlord, but the subtenant is accountable to the tenant.

In this situation, it is important to the landlord that the subtenant’s right of occupation cannot outlast the tenant’s right and, therefore, a sublease would usually be excluded from security of tenure.

Security of tenure arises under the Landlord and Tenant Act 1954. This provision automatically grants a tenant (of a commercial lease of 6 months or longer) a statutory right to renew the lease at the end of the term, unless this security is formally excluded.

For many commercial landlords, a lease is preferable to a licence because it is more structured and regulated, as well as offering a defined length of term or an agreed break option.

Leases often include repairing obligations on tenants, as well as upward-only rent review provisions, which help to maintain the investment value of the property for a commercial landlord.

Furthermore, a landlord selling its reversionary interest will be able to provide clarity to a buyer as to occupational interests in the property.

What is a licence?

A licence, on the other hand, is simply a personal right or permission given to a person or entity to do something on the landowner’s property.

It may be expressly granted or implied and might be used to allow use of sports pitches on certain evenings of the week, to set out bistro tables outside a café or to allow a licensee to cross a field for a defined purpose.

A licence is not always documented by contract and a bare licence is formed when informal permission is granted from a landowner to a licensee, even if no consideration or payment is received.

Since a licence is a permission, not a proprietary right, it does not grant exclusive possession and cannot be assigned to another.

It does not afford the licensee security of tenure and is usually easily terminated on notice – provided that a lease has not inadvertently been granted.

A licence can be appealing when considering short-term occupation, for example, over Christmas where festive stores are seeking temporary trading spaces. It can also allow either party to terminate on relatively short notice.

Commercial landlords may use licence arrangements to allow early occupation to a tenant ahead of a lease being granted, perhaps because the tenant is fitting out the premises before it formally takes occupation under its lease.

It is important to document this carefully to ensure that a relationship of landlord and tenant does not arise.

Why does the difference matter?

Wrongly classifying a licence as a lease is one of the most common and costly mistakes made by commercial property owners.

If a document is labelled a licence, but the terms actually grant exclusive possession of the property, for a fixed term and with a rent reserved, then the licence may instead be a lease.

If a licence is, in substance, a lease, an occupier may gain:

• rights to remain in the property
• statutory protections
• an ability to challenge notices or termination
• a strong negotiating position in any dispute
• rights to assign or underlet.

As a commercial property owner it is, therefore, imperative to make sure any arrangements you put in place for any occupier protect your interests.

How can property owners protect themselves?

To avoid any future confusion or disputes, commercial property owners should ensure their agreement reflects the intended arrangement and clearly states any rules around possession and access.

Our specialist Commercial Property team can help you structure your occupation agreements correctly and ensure statutory protections are properly excluded where necessary.

We can help to protect your interest in your property and identify any risks before they lead to disputes.

If you are already concerned about an existing occupation arrangement, we can provide expert advice on your next steps.

If you need help drafting or reviewing your lease or licence, reach out to our team for guidance.

As we enter 2026, the new calendar year can be a refresh for many companies’ holiday days and can bring potential annual leave disputes.

Clear information around holiday days and pay should be stated in employee contracts and is often also contained in staff handbooks, but when it comes to more complex matters, it can be hard to know how to resolve them.

Our Associate Solicitor, Kristie Willis, explains how early preparation and understanding your obligations can help protect your business.

What are employers’ obligations for holiday pay and time off?

On 1 January 2024, the Government introduced several changes to the Working Time Regulations.

Every worker is entitled to 5.6 weeks of paid annual leave and additional contractual holiday entitlement can be promised in individual contracts.

Of the 5.6 weeks, four weeks must be paid at the worker’s normal rate (including for example, commission and regular overtime) and the remaining 1.6 at the basic remuneration. Many employers chose, however, to pay the remaining 1.6 weeks at the same rate.

For irregular or part-year workers, the reforms allow paid statutory holiday calculated to the hours they worked using the 12.07% accrual method.

When dealing with holiday pay, employers should have clear terms and policies in place to help reduce the risk of disputes.

They should clearly state if rolled-up holiday pay is used and this payment should be marked on payslips as an addition to a worker’s salary, so it is easily identifiable.

Company policies and employers should state if they have a use-it-or-lose-it policy in place for holiday days and offer regular reminders to employees of the deadline.

Some of the most common issues employers face around time off include:

• Conflicting annual leave requests
• Incorrect holiday pay, including overtime and commission
• Discrimination risks for other religious festivals such as Ramadan
• Poor record keeping of leave and holiday pay calculations

With holiday days potentially starting again, employers must remain compliant and make sure no errors are made.

These mistakes can quickly escalate into disputes or even Employment Tribunal claims, so employers need to act fast and seek legal advice early on.

How can employers protect themselves from disputes?

Reducing holiday pay disputes can be as simple as updating contracts and policies on holiday pay calculations, bank holidays, overtime and how leave requests are prioritised during peak seasons.

Employers should communicate with employees on how to put in their leave requests in advance and inform them if their holiday request has not been accepted.

Setting a clear cut-off date and creating a first-come, first-served or rotational holiday process can help manage fairness during busy holiday periods.

Documentation is also important to avoid disputes by maintaining accurate timesheets, overtime records, leave requests and payslips showing holiday pay.

It is important to comply with the current laws and policies on employee pay and to be proactive in any corrections to reduce the risks of a series of deduction claims.

If you are unsure of how to create a legally compliant contract, how holiday pay should be calculated or how to handle discrimination allegations around the holidays, seeking legal advice is crucial.

Why does the right support matter?

Holiday pay disputes can be time-sensitive and costly if not handled correctly, particularly if numerous employees are involved in the dispute.

Our expert team can review and update your contracts or policies to ensure your pay practices are compliant and minimise the risk of tribunal claims.

With the right preparation and legal advice, you can enjoy a productive and less stressful new year.

For tailored support on your holiday pay process or managing a dispute, contact our employment law team today.

When a trespasser enters or remains on your property without permission, it is important that you know your legal rights and what action to take.

Trespassing not only affects your rights as a landowner but also compromises your property’s security and your peace of mind.

Whether it is an innocent mistake or a squatter refusing to leave, knowing your rights and acting quickly can help protect your property and prevent the situation from escalating.

Our Litigation Senior Associate, Gareth Brazier, explains.

What counts as trespassing?

Trespassing involves someone entering or using your land without your consent, whether damage is caused or not.

This can include tenants occupying a building without permission or refusing to leave when asked.

Under the Legal Aid, Sentencing and Punishment of Offenders Act 2012, squatting in a residential property in the UK is a criminal offence and police can intervene.

However, trespassing on commercial and non-residential properties is a civil matter and up to the property owner to take legal action.

The first steps when faced with a trespasser are:

• Asking the trespasser to leave. In some cases, the trespasser may not be aware they are on private land, so informing them and requesting they leave is an important first step.
• Document the situation. Taking notes, photos and any evidence of the trespass will help if legal action is needed.
• Avoid confrontation. Do not use force or aggressive behaviour as this could put you at risk of an allegation of assault or harassment.
• Secure the property. Reinforce gates, fences, locks and install lighting to reduce the likelihood of repeat incidents.

How can I find a legal solution?

If the trespass continues or becomes disruptive, you may need to escalate matters through the courts.

To do so, you must prove you have possession of the land and a better right to possession than the trespasser.

If your documentation is accurate, a court can order an injunction that requires the trespasser to leave and prohibit them from returning.

A trespasser breaching this injunction can lead to an additional stricter injunction, fines, seizure of assets or even imprisonment for repeat offenders.

If someone is occupying your building or land without consent, you can seek a possession order, which allows you to legally remove them as long as the claim has been served on the property itself.

Where trespass has caused loss or damage or if the trespasser has financially benefited, you may be entitled to claim compensation.

By reaching out to legal support, you can understand the right solution and if you are eligible for compensation.

How can you protect your property?

Trespass cases involve strict procedures and tight timeframes, which can leave many property owners feeling overwhelmed.

As well, any errors made in your evidence or court application can delay the outcome and leave you facing costly legal fees.

With our expert guidance, we can help you get ahead of your claim and prepare the correct legal documents for an injunction or possession order.

Acting quickly is important and the sooner legal steps are taken, the faster you can regain control of your property and reduce disruption.

If you are concerned about trespassers on your property, contact our specialist team today.