The action marks the start of enforcement action by the Solicitors Regulation Authority (SRA) against firms that delay compliance with the amended Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
The regulations require firms to carry out a firm-wide money laundering risk assessment. Criminals use property sales and corporate vehicles to hide illicit funds.
In 2019, the SRA reviewed compliance at 400 law firms and found many of them carried out poor quality risk assessments or none at all. It wrote to all firms requiring the compliance officer for legal practice to sign a declaration confirming the practice had a firm-wide risk assessment. The deadline for responses was 31 January 2020.
