The Solicitors Regulation Authority has referred law firm Candey to the Solicitors Disciplinary Tribunal over matters dating back to June 2015. The regulator has simultaneously decided to also refer the firms former partner Richard Morris to the SDT.
The SRA has confirmed the certification of a case to answer concerning allegations related to events from May and June 2015. The allegation is that the firm did not sufficiently ensure the acquisition of necessary AML source of funds information, as mandated by money laundering regulations, in connection to anticipated settlement funds.
Morris, now a director with City firm Radius Law Limited, is alleged by the SRA to have failed to obtain adequate information relating to the source of funds and authorised the ongoing transfer of part of the settlement monies.
In response to these accusations, a spokesperson for Candey stated: “The SRA wrongfully alleges that Candey should have done more to verify the source of funds and should not have authorised onward payment. Candey’s position is that it took all necessary steps to verify the source and acted appropriately based on the detailed settlement agreement. There is no claim that the monies were proceeds of crime, and the SRA does not specify what further verification was needed when it is accepted that the funds were genuine proceeds from an arbitration settlement.”
The allegations against both Candey and Morris remain unproven and will be examined during a hearing before the SDT.