SRA imposes £17,430 fine following prolonged AML compliance failures
A law firm has been fined £17,430 after the Solicitors Regulation Authority (SRA) identified long-standing failures to comply with anti-money laundering (AML) regulations.
King & Co Solicitors agreed to the regulatory settlement following an investigation by the SRA’s AML Proactive Supervision team, which examined the firm’s compliance with the Money Laundering Regulations 2017.
The investigation found that between June 2017 and December 2025, the firm failed to establish and maintain fully compliant policies, controls and procedures to mitigate risks associated with money laundering and terrorist financing.
The SRA also identified deficiencies in file-level compliance. In four out of six files reviewed, the firm did not properly assess client risk, as required under the regulations. In the same number of files, it failed to carry out ongoing monitoring of transactions, including scrutiny of the source of funds where necessary.
The firm admitted that these failures breached both earlier and current regulatory frameworks, including the SRA Principles 2011 and the SRA Principles and Code of Conduct for Firms 2019.
In determining the appropriate sanction, the SRA considered the nature and duration of the misconduct. It found that the breaches demonstrated a persistent failure to meet statutory obligations over a period of more than eight years. The regulator also noted that the firm undertakes a high proportion of conveyancing work, an area considered to carry an elevated risk of money laundering.
The SRA assessed the misconduct as being of medium impact, given the potential risks associated with inadequate controls in high-risk legal services. While no direct harm to clients was identified, the failures created the possibility of facilitating improper transactions.
Mitigating factors were taken into account. The firm cooperated with the investigation, implemented corrective measures, and introduced compliant AML procedures following the SRA’s review. It also provided staff training and ensured that appropriate risk assessments were completed on relevant files.
The fine was reduced from an initial calculation of £19,366 to £17,430 to reflect these mitigating steps. The firm was also ordered to pay £600 in investigation costs.
The SRA stated that the penalty was proportionate and in the public interest, emphasising the importance of compliance with AML regulations to maintain trust in the legal profession and reduce the risk of financial crime.