Firm fined after failing to meet anti-money laundering requirements over several years
A law firm has been fined by the Solicitors Regulation Authority (SRA) after failing to comply with anti-money laundering (AML) regulations over an extended period.
Birchwood Solicitors Limited, based in Bourne End, Buckinghamshire, agreed to pay a financial penalty of £6,353 following an SRA investigation. The outcome was reached by a regulatory settlement agreement dated 18 March 2026 and published the following day.
The SRA’s investigation began after a desk-based review conducted by its AML Proactive Supervision team. The review identified deficiencies in the firm’s compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as well as breaches of SRA Principles and Codes of Conduct.
One of the key findings related to the firm’s failure to maintain an adequate firm-wide risk assessment (FWRA). The regulator found that between 26 June 2017 and 24 July 2025, the firm did not have a compliant FWRA in place that properly identified and assessed money laundering risks, as required by the regulations.
The SRA also identified failings in the firm’s policies, controls, and procedures (PCPs). The firm confirmed that its AML policies were first documented in 2022, despite the requirement being in force since 2017. Furthermore, the initial policies provided were found to be incomplete and not compliant with regulatory standards.
As a result, the SRA concluded that the firm failed to establish and maintain appropriate AML controls between June 2017 and September 2022, and continued to operate with inadequate procedures until July 2025.
The firm admitted the breaches and accepted that it had not complied with the relevant regulatory obligations. These included failures to maintain effective systems and controls, comply with applicable legislation, and uphold public trust in the provision of legal services.
The SRA found that the conduct demonstrated a disregard for statutory and regulatory requirements and had the potential to facilitate money laundering or terrorist financing. However, it noted that there was no evidence of actual harm to clients or third parties.
In determining the sanction, the regulator took into account several mitigating factors. The firm had taken steps to rectify the issues and is now fully compliant with AML requirements. It also cooperated with the investigation and did not benefit financially from the misconduct.
The SRA concluded that a financial penalty was appropriate to maintain professional standards and act as a deterrent to similar breaches within the legal sector.
In addition to the fine, Birchwood Solicitors Limited agreed to pay £600 in investigation costs. The outcome has been published in the interests of transparency in regulatory enforcement.