In the last week four law firms have been fined a combined total of £47,666 by the Solicitors Regulation Authority (SRA) for failing to comply with anti-money laundering (AML) regulations. The breaches, spanning several years, included inadequate risk assessments, failure to maintain proper policies, and lapses that could have facilitated illicit financial activities.
The largest fine, £23,596, was imposed on Grimsby Solicitors Limited (Paul Rudd Solicitors) after an SRA desk-based review identified serious non-compliance with the Money Laundering, Terrorist Financing Regulations. The firm failed to establish proper risk assessments and procedures, with historic breaches also found under older regulations.
John Fletcher Solicitors Limited was fined £11,860 for repeated AML control failings, including not conducting client and matter risk assessments on multiple files between 2017 and 2024. The firm also lacked key written policies for over a decade, leading the SRA to classify its misconduct as “more serious”.
Peter Maughan & Co Limited was penalized £8,947 following an SRA investigation that found inadequate financial crime controls. The regulator highlighted the potential risk of money laundering and terrorist financing due to the firm’s failure to properly assess clients and their sources of funds.
Meanwhile, LCF Residential Limited received the smallest fine, £3,263, after an inspection in March 2023 revealed deficiencies in documenting risk assessments for customer due diligence. The SRA determined that a financial penalty was necessary to reinforce compliance within the legal sector.
The SRA stated that these fines serve as a “credible deterrent” and a reminder to firms that failing to meet AML obligations poses a risk to both the public and the legal profession.
