Dentons: Breach not systemic, tribunal held
The High Court looks set to rule on whether a tribunal was right to find that Dentons’ breach of the anti-money laundering (AML) rules was “inadvertent” and did not amount to professional misconduct.
The Solicitors Regulation Authority (SRA) announced on Friday that it is to appeal the Solicitors Disciplinary Tribunal’s (SDT) decision to clear the world’s largest law firm, having found that it relied on what it was told by the relationship partner who had brought the client, a politically exposed person, over from Salans when it merged with Dentons in 2013.
The tribunal said: “It was plain that the breach was not systemic, indeed, the firm had been commended by the SRA for its AML systems and controls.”
It decided that the breach fell within “the small category of cases where wrongdoing did not amount to professional misconduct”.
The SRA has not yet disclosed the grounds for appeal, which could also feature the SDT’s refusal of the regulator’s claim for costs, nor made any other comment.
Dentons had no comment in response to the announcement but said in a statement following publication of the tribunal’s written reasons last month: “The SRA’s own guidance to the profession is that there may be breaches of the MLRs that are not sufficiently serious to warrant disciplinary action.
“We are pleased that the SDT found that any breach of the MLRs had been inadvertent, did not amount to professional misconduct and that there had been no breach of the principles or code. The SDT also recognised that we not only had relevant and responsible AML policies in place, but that we enforced those policies.
“We recognise that risk management and regulatory compliance requires constant vigilance and attention and, since the period in question, we have significantly enhanced our capabilities and procedures.
“We have co-operated with the SRA throughout its investigation and remain committed to upholding the highest standards of professional conduct.”
Leave a Comment