AML: Firms did not provide information
The Solicitors Regulation Authority (SRA) has issued the first fixed fines to firms that failed to provide it with information about their anti-money laundering and sanctions controls.
Three law firms have been ordered to pay a fixed financial penalty of £750 each and costs of £150.
They are recLAW in Hove and two west London law firms, Sayers Solicitors and Piper May Solicitors.
Each was requested to provide the SRA with data in respect of its anti-money laundering and sanctions requirements.
They failed to respond promptly, as required, and failed to remedy the breach after being given notice and reasonable time in which to do so.
The SRA started handing out fixed financial penalties from autumn 2023 for a limited number of specified, non-complex administrative breaches of its rules. To date, these have been non-compliance with the transparency rules, failing to respond to requests for diversity data, and not updating information about compliance officers.
According to the most recent, if outdated, SRA data, it issued 73 from mid-2023 to 31 October 2024.
The fine doubles to £1,500 for a subsequent breach of the same category within three years.
Alexandra Jones, the SRA’s director of anti-money laundering, said: “Firms must respond to our requests for AML and sanctions information. Money laundering is a significant threat to the economy and the legal sector is a potential facilitator.
“Collecting data allows us to focus on risk, target our inspections and reduce the burden on firms where we can. We are here to support firms that look to comply but will take action where there is repeated non-compliance.”
The SRA is planning to expand the range of matters that can lead to a fixed penalty to include some administrative failures to meet the requirements of the proposed new accountants’ reports regime.