Welcome to the Regulation & Compliance Office’s fortnightly roundup, where we look at all the latest stories to keep you ahead and informed in the world of law and compliance.

The RACO roundup is just another way in which we keep the solicitors and other law professionals we work with in the know, so we can ascertain that you are never missing the vital developments occurring in your profession.

Below, you will find the most recent headlines selected by our compliance experts, followed by a Security Section, where we will also give you an overview of the latest scams currently impacting solicitors and their clients.

***

BE READY FOR AN SRA AML AUDIT

Don’t get caught out. A London-based manager has recently received a 4m pound fine due to client account breaches (see full story below). Considering the 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.

Read full article here.

***

Record-Breaking £4m Fine Over Client Account Transfers 

The Solicitors Regulation Authority has handed out the largest fine ever issued against any firm or individual working in the law profession. 

The individual in question is known to have been the manager of a now-defunct London-based consolidator firm and now must pay almost £4m with additional costs of up to £41,670 as a result of overseeing hundreds of payments out of client accounts. 

The fine far outdoes anything previously issued by the SRA or the Solicitors Disciplinary Tribunal. Beforehand, the previous amount was £500,000, which was given by the tribunal to another London-based firm for anti-money laundering process failures.  

Remember: the SRA is able to issue unlimited fines where misconduct involves an alternative business structure. 

The regulator’s investigators reportedly found evidence of as many as 310 improper transfers to companies connected to the firm’s manager. These transfers were then used to buy assets unrelated to the business, and loan repayments. The SRA also reported forged statements that attempted to cover up these unauthorised transactions. 

Currently, a shortfall of around £10m remains, despite the return of some funds that have already been made. As it stands, the SRA intervention has managed to secure around £22.5m in client money. It has also been announced that the regulator has secured 220,000 files from the various offices, including over 90,000 wills and deeds. 

SRA chief executive Paul Philip said: “[the manager]’s dishonesty impacted thousands of people. We stepped in to safeguard their interests, closing the firm, securing files and returning money to clients.” 

A subsequent consultant who was assisting the manager in question was also disqualified from working in a law firm and ordered to pay approximately £28,230 costs. An additional colleague of the firm was disqualified from working as a firm’s head of finance and administration and ordered to pay £1,350 in costs. Another was fined £26,766 and ordered to pay an additional £1,350 in costs. 

Read full story here.

***

What is Risk Pt 2 Available Now

Are You Assessing & Managing Risk To The Expected Standard?

Act Now – Part 2 of our three-part series on risk and how law firms should approach its assessment and management is now available.

Part 2 – Risk Identification & Action

In our previous blog, What Is Risk Part 1 – First Step of Risk Assessments, we addressed some of the issues a firm should consider when assessing risk, and in particular firm wide risk assessments.

In this blog, we move on to discuss What Is Risk Part 2 – Risk Identification and Action. The final blog will be on Recording Documenting and Reporting (Part 3).

How Law Firms Can Identify and Act on Risk

Identifying risk is not just about understanding where risk comes from in your firm. It is also about communicating what these risks are, the action you expect staff to take, how they should report issues, and to whom.

As we identified in the previous blog, risk arises in several different ways. It is true that most risk assessments performed by staff will arise from cases, and that is where their focus should be. For owners and supervisors of law firms, risk is extended beyond case level transactions. Risk for supervisors are much wider and will cover the actions of their staff alongside internal and external activity surrounding a range of operations, as well as financial and market factors.

All risk factors and how the firm addresses them should be identified through the firm wide risk assessment, which must be documented. Then, the actions and solutions the firm arrives at should be further detailed in a risk and compliance plan accessible to all staff.

TO ACCESS PART 2 OF OUR FREE RISK GUIDE

CLICK HERE

Law Firm Compliance Specialists

For more information on how the Regulation and Compliance Office (RACO) works with firms on risk management, you can contact us on 0203 985 8550, email us info@regulationandcomplianceoffice.co.uk,or visit our website and make an online enquiry.

***

S CA M     A LE R TS

 

‘LegalLens Law Firm’ Website Claiming to be a Law Firm

The SRA has warned that a website at ‘www.legallenslaw.uk’ is operating and falsely claiming to be a law firm under the name ‘LegalLens Law Firm’. The website also falsely displays a supposed SRA digital badge.

The website provides a contact email address of ‘info@legallenslaw.uk’, the telephone number of ‘+1 (415) 878 7078’ and the address of ‘E8 3DQ, Greater London’.

Please note that the SRA does not authorise or regulate a firm of solicitors called ‘LegalLens Law Firm’.

The website provides profile images of various individuals, including the following individuals, who are not authorised or regulated by the SRA:

• ‘Patrick Moody’
• ‘Henry Wilson’
• ‘John Stones’
• ‘Frank Miller’
• ‘Anthony Taylor’
• ‘Mason Robertson’
• ‘Sophia Walker’
• ‘Edward B. Owens’
• ‘Iddris Hussain’
• ‘Ella Wilkinson’
• ‘Mike Ross’
• ‘Eddie Owen’
• ‘Olivia Whitte’ or ‘Olivia Whites’

The website provides purported email addresses for the individuals named above. Each email address ends with the domain ‘@legallenslaw.uk’.

Again, any business or transactions through the website, telephone number or email addresses set out above are not undertaken by a firm of solicitors authorised and regulated by the SRA.

*

BGM Law Ltd Website Misusing Details and Images of Solicitors

The SRA has warned that a website at ‘www.bgmlaw.co.uk’ is operating and misusing the details and images of genuine solicitors.

The website provides addresses of ‘1 Devonshire House, One Mayfair Place, Mayfair, London W1J 8AJ’ and ‘190 High Holborn London WC1V 7BH’ and the telephone numbers of ‘0203 289 4899’ and ‘0207 856 0156’. It also provides an email address of ‘info@bgmlaw.org’.

The SRA has also communicated that it has seen an email sent to a member of the public from an individual called ‘David Barrett’ claiming to be from Asset Recovery Division’ from ‘BGM Law Ltd’ in relation to a supposed ‘investment in a liquidated scheme’. The recipient was informed that funds had been successfully recovered and is being held securely on his behalf, and it could be released to him once an upfront fee is paid.

The recipient also received telephone calls from the numbers of ‘02078560156’ and ‘02039165437’.

The email was sent using an email address of ‘d.barrett@bgmlaw.co.uk’. The email also provides the website of ‘www.bgmlaw.co.uk’ and email address of ‘info@bgmlaw.org’. 

Please note that any business or transaction through the website ‘www.bgmlaw.co.uk’ and any of the contact details above is not undertaken by a firm or individual authorised and regulated by the SRA.

The SRA does, however, authorise and regulate a firm of solicitors called BGM Law Ltd based at 21 Ellis Street London SW1X 9AL.

The SRA authorises and regulates the following solicitors those name and/or images has been misused on the website:

• Rayan Khan
• Ataguba Aboje
• Uchechukwu Humphrey Onyekachi
• David Barrett
• Olivia Clarke
• Solicitors called Catherine Haworth
• Solicitors called Rebecca Nash
• Several solicitors called Sarah Thompson

All of the above solicitors have either already confirmed to the SRA, or it is believed, that none of the genuine solicitors above have any connection to the website.

David Barrett has confirmed he does not have any connection to the website or the email above.

BEEN CONTACTED?

Here’s What to Do…

When a firm’s or individual’s identity has been copied or cloned, due diligence is necessary. If you receive correspondence you believe to be suspicious, you should conduct your own due diligence by checking the authenticity of the correspondence by contacting the law firm directly by reliable and established means.

You can also contact the SRA directly to find out if individuals or firms are regulated and authorised by the SRA and verify an individual’s or firm’s practising details. Other verification methods, such as checking public records (e.g. telephone directories and company records), maybe required in other circumstances.

Reach Out to RACO

We at RACO are always at hand to provide tailored guidance to help you make the most informed and beneficial decisions. We help you understand the recurrent regulatory shifts and work with you to provide solutions. With our team of professional specialists and our renowned legal expertise, we can work with your firm to ensure you are never left unprepared in the wake of legal changes or cyber threats.

For more information on how we can help, call our consultants on 0203 985 8550 or email us at  info@regulationandcomplianceoffice.co.uk