- Publication Date
- 2023-12-08
An investigation was carried out into the law firm following a desk-based review by the AML Proactive Supervision team. The review identified areas of concern in relation to the firm's compliance with the Money Laundering, Terrorist Financing (Information on the Payer) Regulations 2017 (MLRs 2017).
The firm did not have a compliant AML firm-wide risk assessment (FWRA) in place between June 2017 and March 2023, in breach of Regulation 18 of the MLRs 2017. A FWRA provided, dated November 2022, was not compliant with the MLRs 2017. An updated FWRA dated March 2023 was provided and found to be compliant.
The firm also failed to have compliant AML policies, controls, and procedures (PCPs) between June 2017 and March 2023, in breach of Regulation 19 of the MLRs 2017. Although an AML policy was in place since its inception, a desk-based review concluded it did not meet all mandatory requirements. An updated PCP provided in March 2023 was found to be compliant.
The firm admits, and the SRA accepts, that by failing to comply with the MLRs 2017, it breached several regulatory requirements.
The investigation concluded with the firm agreeing to a regulatory settlement, which included a financial penalty and compliance with updated AML regulations. The firm demonstrated cooperation throughout the investigation, and no financial benefit was gained from the misconduct.
This outcome was reached by agreement, and the impact and risk of harm were considered medium. Although the firm was left vulnerable to money laundering risks, no serious issues were found in the sampled files, and no actual harm occurred. The basic penalty was adjusted considering mitigating factors, resulting in an agreed penalty.
The relevant sections on publication, why a fine is an appropriate outcome, and legal framework references were omitted as instructed.