The Solicitors Regulation Authority has said it will continue to ‘ratchet up the consequences’ of non-compliance with anti-money laundering regulations, as it released details of fines totalling almost £100,000 in the first two weeks of May.
In a media briefing last week, the SRA’s chief executive Paul Philip acknowledged that non-compliance with AML rules ‘is probably not deliberate’. However, he warned that not having a risk assessment in place increases the risk of money laundering – a risk that has been reflected in the amount of the SRA’s latest AML-related fines.
So far this month, the details of fines of between £1,000 and £25,000 have been shared for breaches of the regulations. Underwood Solicitors in London received the highest penalty, despite the SRA acknowledging ‘the risk of harm was low’.
Hunter’s Solicitors in High Wycome and Moerans in Edgware each received fines of over £20,000, with Legal Clarity in Birmingham asked to pay a penalty of £18,802. Hammond Bale (London) was fined £6,547, with M Pender in Woking and London’s Lovatt & Co both fined around £1,000.
Last week, the SRA announced all firms within the scope of money laundering regulations will be required to take part in its annual data-gathering exercise.
‘To supervise the legal sector effectively, we need to have accurate data,’ the SRA said.
“This allows us to see the distribution of risk across the legal profession, which in turn informs our programme of inspections and our guidance. Collecting this information allows us to establish where the risks lie and how we can better allocate our resources. Most importantly, this data needs to be up to date and relevant so that our approach can evolve and adapt.”
Addressing risk has been defined as a priority in the final year of SRA’s corporate strategy, which it says will require a 23% budget increase.
