ANOTHER DAY, ANOTHER LAW FIRM HIT WITH AN SRA “AML” FINE – £63K this time

On 4 June 2025, it was reported that the Solicitors Regulation Authority (SRA) fined Gordons Partnership, a law firm based in London and Guildford, £77,784 for failing to comply with anti-money laundering (AML) regulations for three years.

• The firm did not complete appropriate client and matter risk assessments on several files, failed to carry out an independent audit, and did not maintain fully compliant policies and procedures

NOW, 16 June it is reported another firm, T G Baynes Solicitors, has been hit with a heavy turnover-based fine [£63k] over AML compliance failings that the SRA found continued for almost six years.

• From June 2018 to May 2024, the firm failed to establish and maintain AML policies, controls, and procedures and could not conduct client and matter risk assessments.

The cost of failure was

• A fine of 1.6% of its annual domestic turnover.
• After a 30% reduction to take account of mitigation, the fine was £63,869.
• The SRA exceeded its £25,000 fine limit because T G Baynes is an alternative business structure.
• A further costs order was made for £1,350.

The SRA regulator

• Accepted that no harm was caused by the breaches of Kent firm T G Baynes Solicitors but said that non-compliance had persisted for longer than was reasonable.
• Said its anti-money laundering supervision team had carried out a desk-based review of the firm and found compliance failures that had to be referred to investigators.

The SRA said:

• The firm was responsible for its serious conduct, which had the potential to cause harm to the public interest and confidence in the legal profession.
• Any lesser sanction would not provide a credible deterrent to the firm and others.
• A credible deterrent is key in maintaining professional standards and public confidence.’

The firm fully cooperated with the SRA’s investigation, and there was no evidence of harm.

The firm received guidance and took steps to rectify the issue; policies and risk assessments were updated to be fully compliant by June 2024.

The regulator is now conducting a data-gathering exercise to collect information from the whole profession about AML. This will identify the firms that require proactive inspections and desk-based reviews.

SOURCE

• https://www.lawgazette.co.uk/news/sra-hits-another-firm-with-64000-fine-in-aml-blitz/5123602.article
• Law firm fined £77,000 for AML failures as half of compliance officers ...https://www.lawgazette.co.uk/news/compliance-officers-overwhelmed-as-sra-dishes-out-77k-fine/5123465.article
• SRA fine lawyer £78K - one of the largest to date. https://www.comsuregroup.com/news/sra-fine-lawyer-78k-one-of-the-largest-to-date/