UK law firms get ready for crackdown on money laundering

Harsher penalties and a reshaping' of the sector predicted when Financial Conduct Authority takes over as regulator

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.