SRA fines firm after AML failures found in all files during inspection
Merricks Solicitors Limited has been fined £12,041 by the Solicitors Regulation Authority (SRA) following findings of widespread failures to comply with anti-money laundering (AML) requirements.
The outcome, agreed on 25 March 2026 and published on 27 March 2026, was reached through a regulatory settlement agreement between the firm and the SRA.
The SRA’s investigation was initiated after a desk-based review conducted by its AML Proactive Supervision Team. The review identified significant deficiencies in the firm’s compliance with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.
A key finding was that the firm failed to maintain records of client and matter risk assessments (CMRAs) on all six files reviewed during the inspection. As a result, the firm was unable to demonstrate that it had taken appropriate steps to assess and mitigate money laundering risks, as required under Regulation 28(16) of the 2017 regulations.
The SRA concluded that the firm’s conduct breached multiple regulatory requirements across both the pre-2019 and current regulatory frameworks. These included failures to maintain effective systems and controls, comply with applicable legislation, and uphold public trust in legal services.
The regulator assessed the nature of the misconduct as “more serious,” noting that the requirement to document CMRAs had been in place since 2017 and that the firm continued to fall short of this obligation. The risk of harm was assessed as “medium,” particularly given that conveyancing work, considered higher risk for financial crime, accounted for a significant proportion of the firm’s practice.
In determining the financial penalty, the SRA applied its published guidance on fines. The initial penalty was calculated at £13,379 but reduced to £12,041 in light of mitigating factors. These included the firm’s cooperation with the investigation and steps taken to improve its AML compliance framework, including implementing a new CMRA process across active files.
The firm also agreed to pay the investigation costs of £600.
The SRA stated that a financial penalty was appropriate to maintain professional standards and public confidence in the legal sector. It emphasised that failure to comply with AML obligations exposes firms to the risk of being used for money laundering or terrorist financing.
The agreement has been published in line with regulatory requirements, reflecting the importance of transparency and deterrence in enforcement action.