SRA imposes £25,000 fine after uncovering major AML control failures at London based firm
The Solicitors Regulation Authority (SRA) has fined Solomon Taylor & Shaw LLP, a Hampstead-based law firm, £25,000 for multiple breaches of anti-money laundering (AML) regulations, following an investigation that identified serious compliance failures between April 2022 and March 2025.
The decision, reached through a regulatory settlement agreement dated 7 October 2025 and published on 13 October 2025, also requires the firm to pay £600 in investigation costs.
According to the SRA, the enforcement action stemmed from an AML desk-based review conducted by its AML Proactive Supervision Team, which uncovered deficiencies in the firm’s compliance with the Money Laundering, Terrorist Financing (Information on the Payer) Regulations 2017 (MLRs 2017).
Between April 2022, when the firm began operating as a limited liability partnership, and March 2025, Solomon Taylor & Shaw LLP failed to properly assess and document client and matter risk assessments (CMRAs) as required under Regulations 28(12), 28(13), and 28(16) of the MLRs 2017. The regulator concluded that this failure prevented the firm from demonstrating whether its AML measures were appropriate to the level of risk involved.
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The investigation found that over three-quarters of client files reviewed by an independent compliance firm contained either missing or non-compliant CMRAs. This raised significant concerns about the firm’s risk management procedures, particularly in its conveyancing practice, which accounts for more than two-thirds of its overall work. Conveyancing is regarded as a high-risk area under AML legislation due to the potential for criminal misuse of property transactions.
The SRA determined that the firm had breached Principle 2 of the SRA Principles 2019, which requires solicitors to act in a way that upholds public trust and confidence in the profession. It also breached Paragraph 2.1(a) and Paragraph 3.1 of the SRA Code of Conduct for Firms 2019, which require firms to maintain effective governance systems, comply with legal obligations, and stay updated on relevant regulations.
Although the regulator found no evidence of actual money laundering, it stated that the firm’s conduct “had the potential to cause harm” by enabling dubious transactions that could have facilitated financial crime. The SRA described the failure as showing a “disregard towards statutory and regulatory obligations.”
In mitigation, the firm admitted the findings early, cooperated fully with the investigation, and took remedial action. It introduced a compliant CMRA template, provided training to staff on risk assessment procedures, and engaged an independent compliance firm to oversee its ongoing AML framework.
The SRA categorised the misconduct as “less serious” but with a medium impact risk. Using its published guidance, the regulator placed the penalty in Band B, which corresponds to between 0.4% and 1.2% of the firm’s annual domestic turnover. The final fine of £25,000 reflected the mid-point of this range and accounted for the firm’s cooperation and corrective measures.
The regulator emphasised that compliance with AML laws is fundamental to maintaining integrity within the legal sector. It stated that law firms have a duty to implement adequate controls to protect the public and prevent the profession from being exploited by financial criminals.
The decision was published under Rule 9.2 of the SRA Regulatory and Disciplinary Procedure Rules, which mandates public disclosure unless outweighed by exceptional circumstances. The SRA said transparency in such matters serves the public interest and reinforces confidence in regulatory enforcement.
Solomon Taylor & Shaw LLP has agreed not to contest the findings or act inconsistently with the terms of the settlement. Any future breach of this agreement could result in additional disciplinary proceedings.
The case highlights the SRA’s continued focus on AML compliance across the legal profession and its determination to impose financial penalties where firms fail to meet statutory and regulatory standards.