Another firm has been hit with a heavy turnover-based fine over AML compliance failings which the Solicitors Regulation Authority found continued for almost six years. The regulator accepted that no harm was caused by the breaches of Kent firm T G Baynes Solicitors, but said that that non-compliance had persisted for longer than was reasonable.
It was deemed appropriate to fine the firm 1.6% of its annual domestic turnover. After a 30% reduction to take account of mitigation, the fine was £63,869. A further costs order was made for £1,350.
The SRA said its anti-money laundering supervision team had carried out a desk-based review of the firm and found compliance failures which had to be referred to investigators. From June 2018 to May 2024, the firm failed to establish and maintain AML policies, controls and procedures. It also failed to conduct client and matter risk assessments over this period.
The firm was provided with guidance and took steps to rectify the issue; policies and risk assessments were updated to be fully compliant by June 2024.
The SRA said: ‘The firm was responsible for its own conduct which was serious and had the potential to cause harm to the public interest and to public confidence in the legal profession. Any lesser sanction would not provide a credible deterrent to the firm, and others. A credible deterrent plays a key role in maintaining professional standards and upholding public confidence.’
The firm co-operated fully with the SRA’s investigation and there was no evidence any harm. The regulator was able to exceed its £25,000 fining limit because T G Baynes is an alternative business structure.
Earlier this month, the SRA fined another south east firm £77,784 for failing to comply with the rules on client checks for three years.
The regulator is in the midst of a data-gathering exercise collecting information from the whole profession about AML, which will identify the firms that require proactive inspections and desk-based reviews.
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