- Publication Date
- 2022-11-02
The Solicitors Regulation Authority (SRA) conducted an investigation into a law firm led by the relevant lawyer after the firm's failure to comply with an AML desk-based review request. The investigation uncovered several compliance issues related to the Money Laundering, Terrorist Financing (Information on the Payer) Regulations 2017 (MLRs 2017), the SRA Principles 2011, the SRA Code of Conduct 2011, the SRA Principles 2019, and the SRA Code of Conduct for Firms 2019.
The relevant lawyer, being the sole owner and manager of the law firm, held all compliance roles, including Compliance Officer for Legal Practice (COLP), Compliance Officer for Finance and Administration (COFA), Money Laundering Reporting Officer (MLRO), and Money Laundering Compliance Officer (MLCO). The firm did not have an AML practice-wide risk assessment in place, as required by Regulation 18 of the MLRs 2017, from June 2017 until May 2022. Additionally, a false declaration was made in February 2020, stating that the firm's risk assessment was compliant with Regulation 18, despite it not being in place until May 2022.
Further non-compliance was noted in the firm’s failure to establish AML policies, controls, and procedures, as required by Regulation 19 of the MLRs 2017, and previous requirements under the Money Laundering Regulations 2007. The law firm's lack of client/matter risk assessments, pursuant to Regulation 28(12)(a)(ii) of the MLRs 2017, was also cited.
Following the admissions by the relevant lawyer, the SRA determined that the lawyer and the law firm had failed to comply with money laundering legislation. Consequently, it was agreed that a financial penalty of £2,000 be imposed, and the costs of the SRA's investigation amounting to £1,350 be paid.
This summary reflects the actions taken by the SRA regarding the compliance failures observed during their audit and investigation into the law firm's practices.