Spring into action: April blitz on AML breaches
An unprecedented blitz of AML-related sanctions last month included several regulatory fines of more than £10,000. In total, the Solicitors Regulation Authority announced 12 fines levied against firms for non-compliance with money laundering regulations. The total fines – which are paid to the Treasury – came to almost £97,000.
While the level of SRA activity indicates the regulator's determination to come down hard on AML non-compliance, the recent nature of some of the breaches suggests that the message is still not getting through to everyone.
As reported by the Gazette , Yorkshire firm Holden Smith Law incurred the biggest fine of more than £36,000 for failing to conduct client and matter risk assessments over a five-year period.
Hertfordshire firm Legal & Property received the next highest sanction of £19,116 after failing to have in place a documented risk assessment from 2017 to November last year.
The SRA said the firm's conduct showed a 'disregard for statutory and regulatory obligations and had the potential to cause harm, by facilitating dubious transactions that could have led to money laundering (and/or terrorist financing)'. This could have been avoided, it was added, had the firm not failed to put in place a risk assessment at the appropriate time and compliant policies and procedures for handling transactions.
The breach was so serious because conveyancing – considered a particular risk because of the large amounts of money involved – accounts for 85% of the firm's current total work.
There was no evidence of harm, the firm had assisted the SRA investigation throughout and had not benefitted financially from the misconduct. Documents provided in February showed that the firm is not fully compliant with AML regulations.
North east practice Warcup Law Firm Limited was fined £15,598 after failing to have in place an appropriate risk assessment from 2017 to 2021. It also failed to regularly review its policies and procedures from 2020 to August 2024.
The firm has since confirmed it has put in place measures to ensure continuing and future compliance, including updating and amending its PCPs, employed an external auditor who assisted in creating a compliant AML control environment, and rolled out training to staff following the implementation of the new AML controls.
At the start of April the SRA said it had fined Hull firm Rollits LLP £15,168 after it was unable to establish the source of funds on four residential conveyancing transactions between 2023 and 2024. There was no evidence of harm to consumers or third parties and a low risk of repetition. The firm is currently closing having merged with Wilkin Chapman.
Other AML-related fines announced in April were: Barton Law, Exeter: £12,588
Jerome & Co Solicitors, Isle of Wight: £12,194
Callidus Law, Rotherham: £11,232
Mears, Hobbs & Durrant, Lowestoft: £10,670
Idiculla Solicitors, Southampton: £5,375
Alan Turner & Co, Bath: £3,848
Kash Tutter & Co, Derby: £3,303
Lisa Tonge Solicitors, Manchester: £658.
There would appear to be no let-up in SRA activity. Since the start of this month it has announced further fines of £24,820 against Buckinghamshire firm Hunter's Solicitors, £18,802 against Birmingham firm Legal Clarity Limited, and £25,000 against central London firm Underwood Solicitors – all for breaches of money laundering regulations.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 minutes ago
- Yahoo
Aave, Uniswap, Sky Tokens Surge Over 20% as SEC Roundtable Spurs DeFi Optimism
Decentralized finance (DeFi) tokens UNI, AAVE and SKY all rose by more than 20% on optimistic comments from SEC Chair Paul Atkins at a Monday roundtable discussion about the sector. Atkins instructed the regulator to explore exemptions to let decentralized finance (DeFi) firms conduct operations without as many restrictions. "The right to have self-custody of one's private property is a foundational American value," he said. The comments are a stark contrast to those made by the previous commission led by Gary Gensler, which was criticized for stifling innovation by imposing restrictive guidance on crypto firms. "Can you imagine a starker contrast with the previous SEC's approach?," said Noelle Acheson, analyst and author of Crypto Is Macro Now newsletter. "We expected Atkins to say some nice words around the potential for innovation to unleash new financial efficiencies," she wrote. "We didn't expect his support to be quite so emphatic." Industry members heralded the event as a symbolic milestone the event , June 9th "will be remembered as DeFi day," Changpeng "CZ" Zhao, founder of Binance, the largest crypto exchange by trading volume posted on X. "The DeFi Renaissance continues," said Arthur Cheong, founder and CEO of crypto investment firm DeFiance Capital. DeFi-related tokens well outperformed an already upbeat crypto market with bitcoin BTC bouncing to near record prices. Ethereum's ether ETH, a key hub for DeFi applications, also jumped over 8%. The broad-market crypto benchmark CoinDesk 20 Index was 4.7% up over the past 24 hours, while BTC gained 1.5% in the same in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Bessent Emerges as Possible Contender to Succeed Fed's Powell
(Bloomberg) -- A growing chorus of advisers inside and outside the Trump administration are pushing another name to serve as the next chair of the Federal Reserve: Treasury Secretary Scott Bessent. Trump Said He Fired the National Portrait Gallery Director. She's Still There. Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Mayoral Candidates All Agree on Building More Housing. But Where? Senator Calls for Closing Troubled ICE Detention Facility in New Mexico California Pitches Emergency Loans for LA, Local Transit Systems President Donald Trump said Friday he would name a successor 'very soon' to replace Jerome Powell, whose term as Fed chair ends in May 2026. The small list of candidates under consideration has included Kevin Warsh, a former Fed official whom Trump interviewed for the Treasury secretary role in November, according to people familiar with the matter. But Bessent — who is leading Trump's effort to kickstart the US economy with sweeping changes to trade, taxes and regulation — is also now one of the contenders for the job, said the people, who requested anonymity to discuss private conversations. Formal interviews for the position have not begun, two of the people said. 'I have the best job in Washington,' Bessent said in response to a request for comment. 'The president will decide who's best for the economy and the American people.' The White House did not respond to a request for comment. As Treasury chief, Bessent would traditionally play a key role in the search and interview process for the next Fed chair. It's unclear if he would recuse himself as Trump begins to make his decision. 'Given the amount of trust and confidence that the global financial community has in Scott Bessent, he's an obvious candidate,' said Tim Adams, president and CEO of the Institute of International Finance. 'He's a dark horse candidate,' Adams said, adding that Warsh — who served as a governor on the Fed board from 2006 to 2011 — would also be a good choice. Asked specifically about Warsh on Friday, Trump said: 'He's very highly thought of.' Bessent has been at the forefront of negotiations on a US-China trade deal, arguably the most important of the pacts the president is seeking to forge as part of his effort to reshape the global trade landscape. 'Scott Bessent proved he could implement President Trump's agenda during an incredibly turbulent first six months,' said Steve Bannon, former chief White House strategist and outside adviser to the president. 'He's not just the star of the cabinet, but a safe pair of hands for global capital markets.' The president, who first nominated Powell to the job in 2017, has regularly complained that the Fed chief has been too reluctant to cut borrowing costs. Trump pushed Powell to lower interest rates in a White House meeting last month. Powell and Fed officials have held interest rates steady in 2025, arguing a patient approach to policy is appropriate amid economic uncertainty caused by Trump's expanded and evolving use of tariffs. Fed policymakers have said they expect the announced tariffs to weigh on economic growth and boost inflation. Whoever the Senate confirms for the post will have to prove to the world that the Fed's independence from political meddling remains intact. Trump has said many times that Powell is making a mistake by not lowering rates, and has previously said that he should have a say on rate decisions, raising questions over whether markets would see the next pick as beholden to him. Bessent or Warsh 'would be given the benefit of the doubt from the financial community' that they would preserve the independence of the Fed's rate-setting authority, IIF's Adams said. Economist and Trump ally Arthur Laffer said Bessent 'is wonderful, but he already has a job. And his specialty is not monetary policy.' 'As I told the president, I think Kevin Warsh is just perfect for the job,' he said. Other candidates whose names have previously been floated for Fed chair include Kevin Hassett, the White House's National Economic Council director, Christopher Waller, a Fed governor, and former World Bank President David Malpass. New Grads Join Worst Entry-Level Job Market in Years American Mid: Hampton Inn's Good-Enough Formula for World Domination The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling What America's Pizza Economy Is Telling Us About the Real One Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
an hour ago
- Bloomberg
Bessent Emerges as Possible Contender to Succeed Fed's Powell
A growing chorus of advisers inside and outside the Trump administration are pushing another name to serve as the next chair of the Federal Reserve: Treasury Secretary Scott Bessent. President Donald Trump said Friday he would name a successor ' very soon ' to replace Jerome Powell, whose term as Fed chair ends in May 2026. The small list of candidates under consideration has included Kevin Warsh, a former Fed official whom Trump interviewed for the Treasury secretary role in November, according to people familiar with the matter.
