Utilising its fining abilities to the fullest, the Solicitors Regulation Authority has issued a fine of £25,000 for a firm’s AML breaches.
The SRA announced the fine against a firm based in the south east and headquartered in Reading.
After failing to ensure it had relevant documents in place to prevent activities related to money laundering, the SRA flagged potential issues back in October 2023. This came after a desk-based review, which then referred the matter for a formal investigation.
It was later discovered that the firm had failed to have an adequate risk assessment in place for as long as six years. The firm also reportedly failed to establish and maintain the correct policies, controls and procedures, which would have managed the risk of money laundering.
The regulator stated that the fine was based on the breach of the rules, which lasted “longer than was reasonable,” which, in turn, could potentially cause harm to the public interest.
The firm in question cooperated with the investigation fully, and immediately took the necessary remedial action.
Despite there being no evidence that harm had occurred as a result of the necessary documents being in place, the firm was still ordered to pay an additional £1,350 in costs, alongside the initial fine of £25,000.
The Solicitors Regulation Authority is increasing its efforts to double down on firms not compliant with AML regulations and is showing no sign of slowing its disciplinary activity.
It has levied more than £600,000 against almost 50 firms in the last year alone, not including cases that went to the Solicitors Disciplinary Tribunal. In December, six sanctions were announced across a period of three days.
Source: SRA imposes maximum £25,000 fine over AML failings
Related Articles:
- AML Failures: Firm Fined Over £27,000
- SRA: ‘Only 22% of Law Firms Compliant with Anti-Money Laundering Regulations’
- Four Rule Breaches Lead to SRA Closing Mayfair Law Firm
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