The Solicitors Regulation Authority (SRA) is obsessed with money laundering!
It has further increased its Anti-Money Laundering (AML) enforcements, leading to a huge increase in both the frequency and size of fines levied against non-compliant firms.
Ignoring AML compliance can lead to severe penalties, reputational damage, and operational disruptions that could haunt your firm for years. Our expert auditors bring clarity to this complex area, ensuring you are not only compliant but also protected against the ever-evolving tactics of financial criminals.
Increased AML Fines
The SRA is flexing it new fining powers muscle and has issued a series of punitive fines against several firms for failures in AML policies and procedures. In just the first quarter of 2024 alone, ten decisions linked directly to AML infringements were recorded leading to fines of nearly £170,000.
- Austen-Jones Solicitors Limited – fined £15,202 for not training staff on money laundering, and not having the required documentation in place for a firm conducting property work.
- Batchelor Sharp – fined £23,035.50 for not undertaking client and matter risk assessments on five files.
- Stephens Wilmot Ltd – fined £19,383 for not carrying out due diligence in a conveyancing transaction.
- Hine Downing LLP– fined £20,870.68 for AML policy and process failures.
Nearly all fines were NOT related to any actual money laundering but simply for not having or following proper AML policies, controls and / or procedures. These firms either couldn’t produce compliant AML paperwork, failed on-site inspections, or failed remote document reviews by the SRA’s desk-based teams.
Implications for Solicitors
The SRA is not letting up – it has a laser like focus on this area. You must ensure that your AML policies are in place, robust, comprehensive, and properly implemented.
If your firm is subject to the Money Laundering Regulations then you should expect an SRA audit and you must be prepared
For our comprehensive guide to being fully prepared for an SRA AML Audit send Paul Crowther a direct message and we’ll send you one. Completely free of charge
Ask us to complete an Independent AML audit for you now. Having one for virtually all law firms is compulsory. Not undertaking one is not worth the risk.
