Blog
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SRA Open Consultation on Residual Balances in 14 November 2024
While some firms have improved their procedures in response to SRA Guidance and advice, many still struggle to comply with the rules governing residual balances. Failure to address residual balances can result in significant consequences, such as reputational damage, business disruption, and increased professional indemnity insurance (PII) premiums. What are Residual Balances? Residual balances…
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The Highest AML Fine by the SRA was £24,540 in 2024
The Solicitors Regulation Authority (SRA) has recently imposed significant fines on multiple law firms for breaches of anti-money laundering (AML) regulations, with the highest fine reaching £24,540. A common failing among these firms was the absence of a firm-wide risk assessment (FWRA), along with inadequate policies, controls, and procedures (PCPs) to prevent money laundering…
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The SRA Warns over Sham-Litigation
The Solicitors Regulation Authority (SRA) has warned law firms about sham litigation, a tactic criminals use to bypass anti-money laundering (AML) rules by disguising illicit funds as legitimate legal disputes. In new guidance published by the SRA in January 2025, the regulator highlighted the case of fraudster Narinder Kaur, who manipulated multiple firms into…
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London Firm Fined for Residual Balances, Source of Funds Checks and Non-Compliances in AML
A London-based law firm and its director have been fined £25,000 each – totalling £50,000 – for serious compliance failures, including breaches of the SRA Accounting Rules and anti-money laundering (AML) deficiencies. The Solicitors Disciplinary Tribunal (SDT) found that the director falsely claimed that the firm had implemented a Practice-Wide Risk Assessment (PWRA). An…
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SRA Faces Enforcement Over Mishandling of Axiom Ince
According to an article by the Law Gazette, the Solicitors Regulation Authority (SRA) faces historic enforcement action by the Legal Services Board (LSB) following its mishandling of the 2023 collapse of law firm Axiom Ince. An independent review found the SRA’s actions were inadequate and ineffective, with failures in oversight leading to the loss…
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SDT Budget Set to Rise by 25% Amid Surge in Disciplinary Cases
According to Legal Futures, the Solicitors Disciplinary Tribunal (SDT) is set for a 25% budget increase in 2025, rising from £2.5 million to £3.1 million, in response to a spike in cases referred by the Solicitors Regulation Authority (SRA). This funding boost, sourced from practising fees paid by solicitors, will support an expected 300…
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Family Lawyers can face Criminal Liability
The World Uyghur Congress Case Court of Appeal June 2024 Family lawyers need to be aware of the risk of unintentionally receiving criminal property as payment for legal fees, particularly after the judgement handed down in June 2024 in the Court of Appeal decision in R (World Uyghur Congress) v National Crime Agency [2024]…
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Officers Uncover £55 Million Laundered through Chinese Underground Banking Channels in the UK
The Metropolitan Police released an article in August 2024, detailing a successful persecution of seven members of a criminal Chinese underground banking group by British police forces. Following an operation that spanned more than three years, a money laundering network operating through Chinese underground banking channels has been dismantled. The group, which laundered over…
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Lawyers Condemn the SRA’s Increased Fining Powers
In September 2024, a growing number of legal professionals have voiced strong opposition to the Solicitors Regulation Authority’s (SRA) proposed plans to drastically increase its fining powers. Several prominent legal bodies, including the City of London Law Society, have already raised alarms, branding the proposals as unnecessary, confusing, and potentially unlawful. The Birmingham Law…
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Good and Poor Practice for Client and Matter Risk Assessments
A Client and Matter Risk Assessment (CMRA) is a regulatory requirement for evaluating money laundering and terrorist financing risks associated with a client or matter. It aids in determining the appropriate level of due diligence (CDD) required under the Money Laundering Regulations 2017 (MLR 2017). Each client and matter must have a documented risk…
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Anti-Money Laundering and Sanctions Data Collection by the SRA
All firms regulated by the Solicitors Regulation Authority (SRA) have been contacted regarding a data collection exercise. Firms are required to answer questions about the work they carry out within the scope of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), anti-money laundering (AML) procedures,…
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Unlimited Fining Powers by the SRA
As of July 2024, the Solicitors Regulation Authority (SRA) has introduced a new financial penalties framework under the Economic Crime and Corporate Transparency Act (ECCTA) 2023 which has granted the regulator unlimited fining powers. The SRA’s consultation document released June 28th outlines the regulator’s advocacy for unlimited fining powers for all rule breaches by…