Partner - Business Crime and Regulatory
Following our recent report that the Money Laundering Regulations 2007 were not being used to prosecute in the regulated sector, the Solicitors Regulation Authority (SRA) has acted in its capacity as a supervisor under the Regulations by taking rare disciplinary proceedings against a Money Laundering Reporting Officer (MLRO), at Clyde and co.
Although the underlying transactions could not be proved to be fraudulent, the Tribunal criticised the firm for failing to deal with queries and concerns about Money Laundering (I think it meant AML compliance) properly, thereby failing to support individual partners who were not expert in that area.
A timely reminder to all firms to look at their systems and offer proper support to all fee earners, as it appears that the SRA may now start exercising its powers. And the MLRO is in the firing line.
You can read more about the disciplinary proceedings against Clyde & Co here.