The Solicitors Regulation Authority (SRA) has issued a financial penalty of £14,509 against a Bournemouth-based law firm after uncovering serious shortcomings in its anti-money laundering (AML) procedures.
The regulator found that the firm failed to carry out proper client and matter risk assessments, which are essential for spotting potential money laundering threats. In addition, the firm did not have adequate written Policies, Controls, and Procedures (PCPs) in place, as required by the 2017 Money Laundering Regulations.
These issues came to light during an SRA compliance review. Although the firm has since updated its AML framework and introduced compliant PCPs, the lack of documented processes at the time of review resulted in the fine.
This case highlights the SRA’s growing determination to enforce AML rules across the legal sector. Even smaller regional practices are now facing costly penalties if they cannot demonstrate full compliance.
The Bournemouth sanction follows a string of similar enforcement actions. For example, J R Jones Solicitors was fined £10,719 only weeks earlier for comparable AML weaknesses. In fact, in the last six months alone, the SRA has issued 50 fines worth a combined £575,000, revealing widespread deficiencies across the industry.
Larger firms have not escaped scrutiny either. Simpson Thacher & Bartlett, a high-profile U.S. law firm, was fined £300,000 plus £62,000 in legal costs after its London office was found to have operated without proper AML risk assessments or policies for nearly six years. While there was no evidence of actual money laundering, the regulator stressed that the absence of compliance exposed the profession to serious risk.
The message from regulators is clear: no firm, big or small, is exempt from scrutiny. Proper documentation, risk assessments, and robust AML controls are non-negotiable. Law firms are being urged to strengthen their compliance frameworks now, before they find themselves facing similar penalties.
