The SRA has increased their fining power
Last year the SRA increased its fining powers from £2,000 to £25,000 to enable them to impose larger fines on legal firms that fail to implement adequate Anti Money Laundering training and systems. Before this change any fines of over £2,000 would have to be investigated by the Solicitors Disciplinary Tribunal (SDT). The SRA believe that any cases with fines below £25,000 are usually straightforward and do not warrant the time of the SDT.
SRA Fine Law Firm a Record £20,000 for AML Failings
It has recently been announced that the SRA has fined a firm a record £20,000 for failing to have anti-money laundering training and systems in place. The announcement of this fine should trigger some firms into checking that their current AML policies are fit for purpose as this particular fine is 10 times more than SRA have been able to issue previously. Furthermore, the SRA issued this fine despite finding no evidence that the lack of AML training and systems harmed consumers or third parties. The firm in question had received warnings notices from the SRA about ensuring this AML issue was dealt with prior to issuing the fine.
How can we help?
Hawsons is one of the few accountancy practices with a dedicated team of solicitor accountants specialising in the needs of solicitors and legal professionals.
We act for a large number of law firms across all three of our offices and offer a wide range of services which are tailored to meet their individual needs. Our legal client base consists of a multitude of firms of varying structure and size, from sole traders to limited companies and LLPs with corporate members.
Our understanding of the unique issues that many in the sector are facing, combined with our technical experience, allows our solicitor specialists to provide you with proactive, commercial and informed accountancy and tax advice.
Simon Bladen
Partner, Sheffield
More from our legal sector experts
You can find all of our latest legal articles here.
If you are looking for advice in a particular area, please get in touch with your usual Hawsons contact.
Alternatively, we offer all new clients a free initial meeting to have a discussion about their own personal circumstances – find out more or book your free initial meeting here. We have offices in Sheffield, Doncaster and Northampton.
About this Author
Simon Bladen is the partner responsible for looking after the firm’s legal clients and has worked at Hawsons throughout his career. For more information or advice on anything covered in this article, please contact Simon on [email protected] or 0114 226 7141.[/author_info]
Related content
Tax Relief on Partners Personal Expenses
[email protected] If you are a partner in a law firm or LLP, you will already be familiar with the difference between drawings and taxable profit. What is often less clear is how expenses paid personally should be dealt with for tax purposes. We regularly...
Law Firms Close Over Accounting Breaches
[email protected] A recent report found that 26% of law firms have closed due to accounting breaches. Over a quarter of firms shut down by the Solicitors Regulation Authority (SRA) were closed due to failures linked to the SRA Accounts Rules, a cornerstone of law firm...
Legal aid a top priority for new government
The new Justice Minister, Shabana Mahmood, has said she is pledging to make public funding a priority and to smooth relations with the Legal Aid Agency. The Legal Aid Minister, Heidi Alexander admitted that the legal aid system was on life support and it would be a...