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The SRA’s AML BLITZ Continues with Another £64,000 Fine

19 June 2025

Anti-Money Laundering | Compliance | SRA News | UK Law Firms

In accordance with what the Law Gazette is referring to as an “AML SRA Blitz”, another exceptional turnover-based fine has been announced in relation to AML compliance failures,…

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The SRA’s AML BLITZ Continues with Another £64,000 Fine

In accordance with what the Law Gazette is referring to as an “AML SRA Blitz”, another exceptional turnover-based fine has been announced in relation to AML compliance failures, which supposedly lasted for close to six years.

Through the course of an extensive investigation, the Solicitors Regulation Authority found the breaches to have occurred for a period longer than was deemed acceptable, and a fine was issued at 1.6% of the firm’s annual domestic turnover.

Following a desk-based review of the firm conducted by the SRA’s AML supervision team, breaches were identified and passed on to investigators, who confirmed that between 2018 and 2024, AML policies, controls, and procedures were either not established or implemented satisfactorily. It was also noted that the firm, based in Kent, also failed to conduct client and matter risk assessments throughout this time.

Commenting on the situation, the SRA said: “the firm was responsible for its own conduct which was serious and had the potential to cause harm to the public interest and to public confidence in the legal profession.”

“Any lesser sanction would not provide a credible deterrent to the firm, and others. A credible deterrent plays a key role in maintaining professional standards and upholding public confidence.”

Given that the firm is an alternative business structure, the SRA were able was able to exceed its £25,000 fine limit. Earlier this month, the regulator also fined another south east firm £77,784 for failing to comply with the rules on client checks for three years.

Remember: the regulator is in the process of a data-gathering exercise that will collect information from the profession as a whole concerning anti-money laundering. This is for the purpose of identifying firms that require desk-based reviews and further inspections.

Source: here.

How to Prepare for a Desk Based Review

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 conducted 297 inspections, exceeding its target by 128%.

Don’t get caught out. 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 £ 2,000, from June to July 2025, RACO is offering a discount of £500, bringing the cost down to £ 1,500.

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 recognise that you have gaps in your processes and need to overhaul your approach to compliance, including MLR 2017 compliance, our compliance services, starting from £333.33 per month, will put your firm in 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.