AML Firmwide Risk Assessment Case Study: 6FF47-8AC8E-C8113

Publication Date
2021-07-06

The Solicitors Regulation Authority (SRA) conducted an audit into the activities of a law firm in Manchester. The audit identified non-compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017), which came into force in June 2017. The regulations mandate law firms engaging in certain work to perform a risk assessment identifying and assessing business risks related to money laundering and terrorist financing.

The SRA required all relevant firms to submit a declaration confirming the existence of a compliant anti-money laundering firm-wide risk assessment by January 2020. The law firm under audit failed to submit this declaration until April 2021, thus breaching the relevant regulations.

The outcome of the SRA's decision was a fine, reflecting the seriousness of the non-compliance. The law firm was ordered to pay a penalty of £800 and cover additional costs amounting to £600. The SRA's actions in this case underscore the importance of adherence to anti-money laundering regulations to maintain integrity within the legal profession.