Solicitors responsible for their firms’ anti-money laundering systems will now risk being personally fined if they do not have adequate procedures in place, experts have warned.

The Financial Services Authority (FSA) last week levied its first fine on a business money laundering reporting officer (MLRO). If a MLRO at a law firm falls under the FSA regulations, they could face a similar fate if found to have failed to implement effective controls.

Jeremy Summers, partner in business and regulatory investigations at national firm Russell Jones & Walker, said: ‘I don’t expect to see scores of prosecutions, but it’s a reminder to MLROs that they have serious and onerous responsibilities. If people are only paying lip service to them it’s a big risk.’

Mark Dunn, manager in risk and compliance services at LexisNexis, said: ‘The regulator has sent a clear message that it intends to hold individuals personally accountable. MLROs should take this opportunity to review their anti-money laundering procedures.’

Last week, financial advisory firm Sindicatum Holdings was fined £49,000 and its MLRO Michael Wheelhouse £17,500 for not having adequate systems in place. The FSA said Wheelhouse had ‘failed to take reasonable steps to implement adequate procedures for controlling money laundering risk’. The FSA found no evidence of actual money laundering.

Under FSA rules, a firm must take reasonable care to establish and maintain effective systems and controls to counter the risk it might be used to launder money.