Regulators have placed six law firms in ongoing ‘disciplinary processes’ as a result of ‘serious concerns’ over money laundering uncovered during a review of 50 firms.
The Solicitors Regulation Authority (SRA) review focused on compliance with the more stringent demands of regulations introduced last June.
While most of the firms had good training processes and were doing appropriate customer due diligence, others were not doing enough to comply.
Across all 50 firms, only 69% of files reviewed had written evidence that the risk had been assessed. A mere 17 firms had a firm-wide risk assessment in place or were in the process of implementing one.
In the past three years, concerns over money laundering has led the SRA to close down eight firms, with a further 14 closing voluntarily. It has referred 49 solicitors and two other firms to the Solicitors Disciplinary Tribunal.
The SRA said law firms were ‘an obvious target’ for money launderers.
