High court upholds tribunal decision clearing solicitor of money laundering rule breach

The Solicitors Regulation Authority (SRA) has failed in its attempt to overturn a tribunal’s decision that cleared solicitor George Fahim Sa’id of failing to follow money laundering regulations, as reported by The Law Society Gazette.

Sa’id, operating as George Anthony Andrews, assisted a wealthy Iraqi family in purchasing a £27 million hotel and an £8.5 million house in London. One family member, anonymised to protect legal professional privilege, was an Iraqi government minister, classifying them as a politically exposed person (PEP) under money laundering rules. The SRA contended that Sa’id should have conducted an enhanced due diligence check due to the PEP status.

Sa’id acknowledged deficiencies in his money laundering systems during these transactions. Despite inquiries that satisfied him his client was not a PEP, a family member of a PEP, or a close associate of a PEP, this misclassification reduced the money laundering risk from high to medium. He relied on a PEP questionnaire by Veriphy, whose printout marked the client as a ‘pass’.

The Solicitors Disciplinary Tribunal (SDT) found Sa’id’s due diligence sufficient, given his 20-year familiarity with his clients, their business affairs, and family assets, without any known political involvement. The SRA appealed to the High Court, arguing that the SDT failed to provide adequate reasons for dismissing the allegations.

Mrs. Justice Thornton upheld the SDT’s decision, stating that Sa’id’s admitted due diligence failings did not prove his firm’s systems were inadequate. She highlighted that Sa’id’s use of an external search service, which mistakenly failed to identify the PEP connection, exceeded the guidance requirements at the time. The SRA’s appeal was dismissed.