SRA AML Audit Results in £23k fine

A CQS accredited firm operating from two small offices in the south west has been hit with a £23,000 fine for failing to comply with AML regulations. Lexsure has announced a tenfold increase in weekly enquiries concerning their AML audit solutions since this fine was announced.

CQS firm Batchelor Sharp was issued with the sanction – almost the maximum the SRA can impose – despite there being no evidence any harm caused. It is not clear whether the firm had an adequate CQS AML Policy.

The SRA said it had carried out a desk-based AML audit at the firm March 2023 to assess compliance with the regulations from 2017. Five conveyancing matter were found with no client matter risk assessments (CMRA). The firm accepted it had not completed any such CMRAs on files prior to March 2023.

The SRA said the breach of AML regulatory obligations had persisted for ‘longer than was reasonable’ and demonstrated a ‘pattern of non-compliance’. The firm’s conduct, it was stated, had the potential to cause serious harm to the public interest and to public confidence in the legal profession.

Some might reasonably point out that If the SRA levy a nearon maximum fine for to this firm, where is the room for the SRA manoeuvre when they encounter more serious cases?

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