International Fraud Awareness Week 2025 – Top strategies to protect your business
Fraud is no longer a distant threat—it’s a daily reality for businesses and individuals alike. According to the Association of …
Insight
In a recent disciplinary case, a solicitor was struck off and ordered to pay nearly £30,000 in costs after the Solicitors Disciplinary Tribunal found “widespread and fundamental non-compliance” with anti-money laundering (AML) regulations.
The breaches spanned six years and included failures in firm-wide risk assessments, customer due diligence, source of funds checks, and proper handling of client money.
This case is a stark reminder that AML compliance is not just a regulatory requirement—it’s a cornerstone of professional integrity and public trust. Here, we unpack the cost of non-compliance with AML regulations.
What are the risks of non-compliance?
The tribunal highlighted that the firm had processed over £8.8 million in unverified funds, posing a direct threat to the legal profession and public safety.
Clients were left waiting years for the return of residual balances, and misleading information delayed regulatory intervention. The solicitor admitted to all allegations, including dishonesty in confirming compliance to the regulator.
The outcome? Permanent removal from the profession and reputational damage that no amount of remediation can undo.
What this means for regulated firms
AML regulations—particularly the Money Laundering, Terrorist Financing and Transfer of Funds regulations 2017—require firms to:
- Conduct firm-wide risk assessments (FWRA)
- Implement robust policies, controls, and procedures (PCPs)
- Apply customer due diligence (CDD) measures
- Monitor transactions and verify sources of funds
Failure to meet these obligations can result in fines, disciplinary action, and even criminal liability. But beyond the legal consequences, non-compliance undermines the trust clients place in professionals to safeguard their interests.
At Veriphy, we provide AML compliance solutions that are straightforward and reliable. Our platform supports:
- Automated risk assessments
- Audit trails for regulatory reporting
We understand that compliance can be complex—but with the right systems in place, it doesn’t have to be risky.
This case is a wake-up call for firms across the legal and financial sectors. AML compliance is not a one-time task—it’s an ongoing responsibility. With regulators stepping up enforcement, now is the time to ensure your firm is protected.
Need support? Get in touch with our team of experts to learn how Veriphy can strengthen your AML processes or take a browse of our solutions and request a free demo to see our tech in action. We even offer learning through our training academy, to help your teams develop their understanding of compliance and its importance.
