A firm that failed to put in place mandatory precautions against money laundering, and which did not carry out an adequate source of funds check on a conveyancing client, has been penalised by the regulator.
According to an SRA decision notice published today, Bishop Auckland firm Hewitts Solicitors breached the 2017 Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations by failing to complete a documented and compliant firm-wide risk assessment.
From 2017 onwards, the firm ’failed to have in place up to date anti-money laundering policies, controls and procedures to mitigate and effectively manage the risks of money laundering and terrorist financing’. From October 2018 to July 2022, Hewitts also failed to nominate a money laundering reporting officer, as required by the 2017 regulations.
Hewitts also failed to conduct any adequate source of funds checks for a client in a conveyancing transaction that completed in 2018, the notice states. The firm also failed to conduct ongoing monitoring of the transaction as it progressed, to enable the firm to assess the risk of money laundering posed.
Hewitts was directed to pay a financial penalty of £1,300 plus costs of £1,350.
