- Publication Date
- 2024-02-23
Following an investigation conducted by the SRA, a number of compliance issues were identified in relation to the "the law firm's" adherence to the Money Laundering, Terrorist Financing (Information on the Payer) Regulations 2017 (MLRs 2017).
The firm's-wide risk assessment (FWRA) was found to be lacking. The law firm did not have a documented FWRA in place from June 2017 to July 2023, which is a breach of Regulation 18 of the MLRs 2017. Furthermore, between July 2023 and August 2023, the firm failed to have an appropriate FWRA. The FWRA provided in July 2023 was not compliant with the MLRs 2017, as it had not been tailored to the firm and required further detail on three of the five required areas. However, an updated FWRA and risk assessment matrix compliant with Regulation 18 of the MLRs 2017 was provided in October 2023.
In terms of Policies, Controls, and Procedures (PCPs), between June 2017 and August 2023, the law firm failed to establish and maintain AML policies, controls, and procedures which mitigate and effectively manage the risks of money laundering and terrorist financing, and regularly review and update them, in breach of Regulation 19 of the MLRs 2017. The documents reviewed were not compliant with the MLRs 2017, as they did not cover multiple mandatory areas set out in the regulations. The firm later provided a copy of its updated AML policies, dated September 2023, which were compliant with Regulation 19 of the MLRs 2017.
The law firm admitted to failing to comply with the MLRs 2017. From June 2017 to November 2019, the firm breached certain principles of the SRA Principles 2011 and did not achieve specific outcomes required by the SRA Code of Conduct 2011. From November 2019 until September 2023, the firm breached further principles of the SRA Principles 2019 and failed to meet requirements set by the SRA Code of Conduct for Firms 2019.
As a result of these findings, the law firm has agreed to pay a financial penalty amounting to £3,640. Moreover, the firm has agreed to cover the investigation costs of £600 and has cooperated throughout the investigation process, showing remorse for its actions. The law firm has taken steps to rectify the non-compliant documents and is now fully compliant with the MLRs 2017.