No summer break for AML enforcements as the SRA issue huge fines

The Solicitors Regulation Authority (SRA) has made it clear – AML enforcement doesn’t take holidays! In July alone, the SRA issued fines totalling over £275,000 to 13 law firms for breaches of anti-money laundering (AML) regulations.  

These penalties, some dating back over a decade, reflect a growing trend of retrospective scrutiny and tougher enforcement. 

This surge in disciplinary action sends a strong message to regulated firms that AML compliance is not a one-time task—it’s an ongoing obligation. 

What went wrong? 

The breaches cited by the SRA include: 

• Failure to implement firm-wide risk assessments  

• Inadequate client and matter risk assessments  

• Poor documentation of customer due diligence  

• Lack of regular review and updating of AML policy documents and policies, controls, and procedures  

• Failure to identify and verify source of funds 

These failures weren’t isolated incidents—they were systemic, spanning years and affecting multiple client files. The SRA’s decisions show that even historic breaches are being pursued, and penalties are increasing in severity. 

AML regulations are designed to protect the legal and financial sectors from being exploited for criminal purposes. When firms fall short, they not only risk regulatory penalties but also damage to their reputation and client trust. 

The SRA has warned that enforcement will continue to ramp up, with more inspections, desk reviews, and disciplinary actions expected. Firms of all sizes are under scrutiny, and no sector is exempt. 

We understand the complexities of AML compliance. Our suite of tools is designed to help firms meet their obligations with confidence and efficiency: 

• Automated AML checks for individuals and businesses 

• Real-time PEP and sanctions screening 

• Source of funds verification 

• AML policy documentation 

Our platform helps firms stay ahead of regulatory expectations, reducing the risk of non-compliance and enabling smoother onboarding processes. 

The recent wave of fines is a wake-up call. AML compliance isn’t just about avoiding penalties—it’s about safeguarding your firm, your clients, and the integrity of the profession. 

Need support strengthening your AML compliance processes? Our experts are on hand to help—just get in touch or request a demo to learn more about our solutions! You can also sign up for one of our training courses to develop your team’s knowledge and understanding of compliance.