After failing to carry out money-laundering checks on the £8.8 million they were handling, a solicitor has been struck off for what the Solicitors Regulation Authority is referring to as “widespread and fundamental non-compliance”.
The solicitor in question operated as a sole practitioner, working for the most part in residential conveyancing, when the regulator raised concerns across the profession about firm-wide risk assessments (FWRA). In 2019, the solicitor responded to a notice asking whether the solicitor’s firm had one in place. The solicitor then responded to affirm that an FWRA was in place, despite the fact that this wasn’t true.
In a later interview with an SRA investigator, however, the solicitor confessed to not having one in place – neither before nor at the time of intervention. The solicitor also confessed to not knowing what a firm-wide risk assessment was.
The Solicitors Disciplinary Tribunal reportedly heard of the solicitor’s failings concerning essential source of wealth and funds checks for as many as 63 clients, in addition to conveyancing transactions amounting to over £8m.
The SDT: “For the six years the respondent was its sole practitioner, the firm was vulnerable to the risk of being manipulated for the use of money laundering and/or terrorist financing”.
In conclusion, the SDT commented on how the dishonesty was a “very serious example of dishonesty given his position as a solicitor and compliance officer for legal practice, in a high-risk area, and in response to a direct regulatory inquiry. The widespread and fundamental non-compliance with critical regulations represented systemic failures throughout the six years of his sole practice.”
“Clients suffered actual harm through being deprived of over £100,000 in residual balances for years. The delays in reporting and misleading information prevented the SRA from gaining full knowledge of the issues sooner, thereby delaying intervention and allowing the risk to client money to persist.”
Source: here.
AML Support for Law Firms UK
All firms need to demonstrate and uphold high standards in their AML systems and processes, as well as in their management and supervision. This also involves outlining how the firm operates, including the conduct of staff through set policies, controls and procedures.
At Regulation & Compliance Office, we can offer a number of outsourced support solutions, including:
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.
Related Articles:
- Solicitor Who Defrauded Her Employer of £160,000 Jailed For 3 Years
- Removed from the Profession for Hiding Complaint Progress
- Arrested by SFO: Solicitor Found Allowing Firm to be Used as £30m Banking Facility
Regulation & Compliance Office
For more information on the Regulation & Compliance Office and to discuss how we may be able to assist in accelerating your risk management or compliance and regulation, you can call us on 0203 985 8550 or email us at info@regulationandcomplianceoffice.co.uk
