Don’t get caught out. Only yesterday, a London-based manager received a 4m pound fine due to client account breaches. Considering the recent statements made by the SRA’s Chief Executive, Paul Philip (see below), time is running out for firms that are still not taking the necessary action to ensure their compliance.
Regulation and Compliance Office (RACO) has helped multiple Firms successfully navigate an SRA Audit. Details of how RACO can help your Firm prepare for an SRA AML Audit are below, but first, an overview of the SRA’s position.
Chief executive Paul Philip has revealed that the Solicitors Regulation Authority is to ramp up its enforcement of money laundering compliance severely following its continual frustration with non-compliant firms.
Prepare yourselves and your firm for what the Law Gazette is referring to as the SRA’s “blitz on AML breaches” as the regulator makes preparations to increase its crusade against firms failing to meet the expected standards.
Chief executive Paul Philip stated: ‘We are still finding fairly basic deficiencies in AML arrangements within firms. Fines have been continually going up.”
“Not having a risk assessment in place does increase the risk of money laundering. We will continue to ratchet up the consequences if people don’t comply.”
The SRA is also planning a data-gathering exercise. This will collect information about
- AML
- Sanctions, and
- Suspicious activity reports
-from the whole profession, and start at the end of June. It will run for six weeks and help to prioritise firms that require inspections and desk-based reviews. Recently published board papers revealed that a sweeping poll of the profession will be carried out in the coming weeks, too.
Did you know: Last November, the regulator set itself the target to carry out 700 inspections in 2024/25. From November to February, the SRA made 297 inspections and beat its target by 128%
Firms who are already protected by RACO’s Regulation & Compliance Service are covered, but for firms who aren’t, we may still be able to help…
If you think your firm may be at risk or simply wish to confirm it is achieving the required standards, see our solutions listed below.
SRA OUTCOMES
There are typically three outcomes to an AML Audit:
- The SRA AML Audit Team accepts you have been compliant, and no action is taken.
- The SRA AML Audit Team considers there to be some corrective actions required and will provide guidance to do so, but again, no action is taken.
- The SRA AML Audit Team considers there to be more serious issues, and they provide a Compliance Plan to rectify breaches, but they refer the Firm to the investigation team for further action.
If you consider that your Firm may not be compliant, it is essential that you ensure you are ready before the SRA arrives. You may not be able to fix the past, but ensuring you stop any breaches by achieving compliance will assist in mitigation and reduce a fine.
At RACO, we have 2 options to assist you:
OPTION 1 – OUR LIMITED-TIME OFFER – ONE OFF REVIEW
While our AML reviews typically cost £2000, from June to July 2025, RACO is offering a discount of £500, bringing the cost to £1500.
What Does This Offer Include?
- Data request and identification of documents you need in place to demonstrate compliance (Policies, Controls and Procedures).
- A review of your
- Regulation 19 Policies Controls and Procedures.
- Regulation 18 Firm Wide Risk Assessment.
- Training materials.
- Client and Matter Risk Assessment forms.
- Guidance on any shortcomings and areas of improvement.
- Corrective action sheet that explains any concerns and how to fix them.
- A written report
- A discussion with the MLRO and Partners to run through each of the corrective actions.
- Identification of any issue you may confront with an audit and a strategy on how to address the SRA.
OPTION 2 – OUR COMPLIANCE SERVICES
If you consider that you have gaps in your processes and you need to overhaul your approach to Compliance generally, including MLR 2017 compliance, our compliance services, which start from £333.33 per month, will put your firm into a position where it is immediately compliant.
You can see full details of each service by clicking the links below:
Regulation & Compliance Service – Our Risk Management Assessment Service has been specifically designed to review and update a firm’s approach to risk and compliance management.
- MLR 2017 Regulation 21 Independent Audit – A review of the firm’s approach to regulation and compliance, including AML procedures, with the audit meeting the requirements of Regulation 21 of AML 2017. The output provides the firm with a written gap analysis and solutions to remedy any issues and ensure compliance.
- AML Training Courses – Our Typical AML Training Includes:
- AML Training for ALL staff to meet the firm’s obligation to provide annual training.
- One-to-one training for the MLRO and MLCO on their obligations and requirements.
Compliance Service Offers
Please bear in mind that this is a limited-time offer, so please contact us immediately to take full advantage.
Our limited-time special offer review will ensure your firm can present to the regulator a compliant approach to MLR 2017 obligations before they request it. While unable to fix the past, we can protect your firm’s present and future.
The SRA will adopt a different approach toward firms that can demonstrate compliance proactively beforehand. Firms still requiring direction can expect sterner treatment.
Contact Us Now
Don’t get caught out! Call us now on 0203 985 8550, email us at info@regulationandcomplianceoffice.co.uk or make an online enquiry here.
