In recent years, the Solicitors Regulation Authority (SRA) has intensified its efforts to ensure UK solicitors’ firms adhere to stringent anti-money laundering (AML) protocols. This heightened scrutiny aims to bolster the legal profession’s integrity and shield the UK economy from illicit financial activities.
Recent Enforcement Actions
A notable instance of the SRA’s rigorous enforcement is the case involving the US law firm Simpson Thacher & Bartlett. In March 2025, the firm was fined £362,000 after admitting to shortcomings in its AML controls within its London office. The SRA’s investigation revealed that between June 2017 and January 2023, the firm lacked adequate policies, controls, or procedures to combat money laundering. Additionally, they failed to maintain compliant risk assessments for certain client files over an extended period. This action underscores the SRA’s commitment to holding firms accountable, regardless of their stature.
Similarly, the SRA successfully appealed against a previous tribunal ruling concerning Dentons, another major law firm, over alleged AML failures. The High Court’s decision to remit the case for reconsideration highlights the SRA’s dedication to ensuring compliance across the board.
Identified Compliance Challenges
Despite these enforcement actions, challenges persist within the legal sector regarding AML compliance. A report from Legal Futures highlighted an over-reliance by solicitors on their Compliance Officers for Legal Practice (COLPs). This dependency can lead to complacency, as individual solicitors may neglect their personal responsibilities concerning AML measures. The SRA emphasises that while COLPs play a crucial role, every solicitor must actively engage in it’s compliance regime to mitigate risks effectively.
Guidance and Resources
To support firms in strengthening their AML frameworks, the SRA provides comprehensive guidance and resources. Their official website offers detailed information on AML obligations, risk assessments, and best practices. Firms are encouraged to utilise these resources to ensure their policies and procedures align with regulatory expectations.
Conclusion
The SRA’s proactive stance on AML compliance serves as a critical reminder to all solicitors’ firms of the importance of robust internal controls. By enforcing regulations and offering guidance, the SRA aims to uphold the profession’s integrity and protect the UK economy from the detrimental effects of money laundering. Firms must recognise that AML compliance is a collective responsibility, necessitating active participation from every member to effectively counteract financial crime.
