The Solicitors Regulation Authority (SRA) has reaffirmed its commitment to stricter enforcement of anti-money laundering (AML) rules, revealing that nearly £100,000 in fines were issued during the first two weeks of May alone.

At a media briefing held last week, SRA chief executive Paul Philip acknowledged that many AML breaches are "probably not deliberate." Nonetheless, he stressed that the absence of a proper risk assessment significantly heightens the potential for money laundering—an issue reflected in the severity of recent penalties.

This month, fines ranging from £1,000 to £25,000 have been imposed for breaches of AML regulations. Underwood Solicitors in London received the largest fine, even though the SRA noted that “the risk of harm was low.”

Other firms receiving notable penalties include Hunter’s Solicitors in High Wycombe and Moerans in Edgware, each fined over £20,000. Legal Clarity in Birmingham was penalized £18,802. Hammond Bale (London) received a fine of £6,547, while M Pender in Woking and Lovatt & Co in London were fined approximately £1,000 each.

Additionally, the SRA has announced that all firms falling under AML regulations will now be required to participate in its annual data-gathering initiative.

“To supervise the legal sector effectively, we need to have accurate data,” the SRA stated.

“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.”

Tackling risk has been named a key objective in the final year of the SRA’s corporate strategy, which the regulator says necessitates a 23% increase in its overall budget. 

If you would like to talk about our AML, Biometric ID Checks, and Safe Harbour, contact us via marketing@legalbrokers.com or call 0345 603 0708.

Source: Juliet Shaw, Today's Conveyancer