Money laundering: Firm not in compliance for six years
A Kent law firm has been fined nearly £64,000 for basic anti-money laundering (AML) control breaches over many years, one of the larger penalties handed out for the failures.
For six years to May 2024, TG Baynes in Bexleyheath failed to establish and maintain policies, controls and procedures to mitigate and manage effectively the risks of money laundering and terrorist financing, as identified in any firm-wide risk assessment, as required by the 2017 Money Laundering Regulations.
It also failed to conduct client and matter risk assessments (CMRAs).
A notice published by the Solicitors Regulation Authority (SRA) on Friday said the firm “was provided with guidance and took steps to rectify the issues” and came into compliance by June 2024.
A fine reflected the failure “to have proper regard to the SRA’s guidance and warning notices”, and any lesser sanction “would not provide a credible deterrent to the firm, and others”.
The fine was set at 1.6% of the firm’s annual domestic turnover, reduced by 30% in light of the mitigation, including the firm’s co-operation with the regulator. There was no evidence that harm had materialised as a result of the misconduct.
The meant a final figure of £63,869, plus costs of £1,350. As TG Baynes is an alternative business structure, the SRA was able to fine it more than the £25,000 limit for traditional firms, although we reported recently that it is working to activate its new power to levy unlimited fines on all types of firm in cases of economic crime.
This is the latest in a steady stream of fines for similar breaches; earlier this month, London firm Gordons Partnership was fined £77,784.
Since we reported on that, there have been seven other firms, excluding TG Baynes, fined for similar AML breaches, totalling £88,000. They included Greater Manchester firm Bannister Preston, fined £22,831 for failing to conduct CMRAs on six conveyancing files.
All fines are paid to HM Treasury.
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