In July 2025, the Solicitors Regulation Authority (SRA) demonstrated a firm stance against anti-money laundering (AML) non-compliance by imposing a total of £275,170 in penalties across 13 law firms, reinforcing its message that AML enforcement remains unwavering with no summer reprieve. These enforcement actions included historic breaches dating back as far as 2011, highlighting the SRA’s ongoing commitment to holding firms accountable for AML failures irrespective of when the violations occurred.
Among the notable fines, Amphlett Lissimore Bagshaws in London faced the most severe penalty totaling £114,006. This hefty sanction stemmed from the firm’s failure to implement adequate AML policies, controls, and procedures (PCPs) and the failure to conduct proper client and matter risk assessments (CMRAs) over a prolonged period from December 2019 to March 2024. The scale and duration of the failings underscore how seriously the SRA treats systemic AML deficiencies.
Other significant fines announced in July include:
- Andrew & Andrew Solicitors Limited, Portsmouth, fined £25,000 for failing to maintain an appropriate firm-wide risk assessment (FWRA) and conduct CMRAs between June 2017 and January 2024.
- Buglear Bate & Co, Woking, fined £4,652 for inadequate documentation of CMRAs, deficient customer due diligence (CDD) measures on a risk-sensitive basis from October 2011 to June 2017, and failure to undertake CMRAs on selected files reviewed between June 2017 and March 2025.
The overarching trend revealed by these enforcement decisions is that many firms continue to neglect fundamental AML obligations, such as maintaining updated risk assessments and implementing robust policies tailored to the complexities of client and transactional risk. The SRA’s detailed publication of these penalties serves both to penalize non-compliance and to signal to the entire legal sector that AML vigilance is mandatory and subject to rigorous regulatory scrutiny at all times.
SRA Chief Executive Paul Philip has previously emphasized the importance of rigorous AML compliance, acknowledging that breaches are “probably not deliberate” but underscoring that the absence of proper risk assessments significantly heightens money laundering risks. Philip stressed that the SRA remains committed to escalating consequences for non-compliance, asserting that robust AML controls and timely reporting of compliance officer changes are essential responsibilities for law firms.
The SRA’s enforcement focus includes key AML compliance failures commonly identified across fined firms:
- Lack of documented, firm-wide AML risk assessments, which are critical to understanding and mitigating money laundering risks.
- Inadequate AML policies, controls, and staff training, leaving firms vulnerable to facilitation of financial crime.
- Failures to notify the SRA promptly of changes in Compliance Officers for Legal Practice (COLPs) or Compliance Officers for Finance and Administration (COFAs).
- Longstanding non-compliance stretching back several years, indicating systemic weaknesses rather than isolated lapses.
The tightening regulatory environment is coupled with reforms to financial penalty frameworks that allow fines to be pegged as a percentage of a firm’s annual domestic turnover, up to 5%. This aims to ensure that sanctions are both proportionate and effective deterrents against recurring AML breaches, safeguarding public confidence in the legal profession.
Experts in AML compliance technologies, such as Tim Barnett, CEO of Credas Technologies, highlight how advanced identity verification and real-time due diligence tools can support firms in meeting regulatory expectations and reducing risk exposure. These tools leverage biometric facial recognition and extensive identity document verification to help firms confidently identify and assess clients, aligning with the SRA’s emphasis on thorough client risk assessment.
This heightened enforcement follows the SRA’s annual AML and sanctions data-gathering exercise, which aids in mapping the distribution of money laundering risks across the legal sector. The data collection enables the SRA to adapt its supervisory approach, target inspections, and allocate resources effectively to areas of greatest concern.
The SRA’s recent actions resonate with the findings of their 2025 National Risk Assessment, which indicates that the money laundering risk within the legal profession remains high and unchanged, necessitating ongoing diligence and improvement.
In summary, July’s disclosure of AML penalties totaling £275,170 confirms that the SRA continues to apply rigorous oversight and enforcement without pause. Law firms are reminded that AML compliance is an essential ongoing commitment requiring comprehensive risk assessments, robust internal controls, continuous staff training, and transparency with the regulator. The SRA’s approach reflects a broader regulatory imperative to clamp down on economic crime through the legal sector, protecting both the integrity of the profession and the wider financial system.
AML Editor’s article was originally published in todaysfamilylawyer.co on August 11, 2025