SRA finds Barnsley firm breached AML rules for seven years before taking corrective action
The Solicitors Regulation Authority (SRA) has fined Barnsley law firm Elmhirst Parker LLP £25,000 after finding it failed for more than seven years to comply with key anti-money laundering (AML) regulations.
The firm, based at 17–19 Regent Street, Barnsley (SRA ID 440335), also agreed to pay £600 in investigation costs following a regulatory settlement agreement dated 24 September 2025 and published on 7 October 2025.
The SRA’s investigation followed a desk-based review by its AML Proactive Supervision Team, which identified major gaps in the firm’s compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017).
According to the SRA, Elmhirst Parker LLP failed to establish and maintain fully compliant policies, controls and procedures (PCPs) to mitigate and manage money laundering risks between June 2017 and March 2025. The firm also failed to conduct client and matter risk assessments (CMRAs), as required under Regulations 28(12)(a)(ii) and 28(13) of the MLRs 2017.
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The investigation found that during this period, the firm carried out conveyancing work — considered a high-risk area for money laundering — without having the appropriate AML control environment in place. The SRA said this exposed the firm to the potential of facilitating money laundering or terrorist financing.
The firm has since taken corrective steps. It has updated its AML framework, introduced compliant PCPs, CMRAs and firm-wide risk assessments, registered for tax adviser services, and trained staff in ongoing monitoring and source-of-funds checks. The SRA confirmed it was satisfied that the firm is now compliant.
Elmhirst Parker admitted the breaches, and the SRA accepted that its conduct breached both the 2011 and 2019 SRA Principles and Codes of Conduct. These included:
- Principle 6 (2011) – maintaining public trust in legal services;
- Principle 8 (2011) – ensuring effective business governance and financial risk management;
- Outcome 7.5 (2011 Code) – complying with legislation applicable to the business, including AML rules;
- Principle 2 (2019) – acting in a way that upholds public trust and confidence in the profession; and
- Paragraphs 2.1(a), 2.2 and 3.1 (2019 Code for Firms) – requiring effective governance, record-keeping, and compliance with law and regulation.
The SRA found that Elmhirst Parker’s non-compliance lasted over seven years and said the firm only became compliant after being prompted by the regulator’s AML supervision review. It described the conduct as “reckless” and showing “a failure to pay sufficient regard” to money laundering legislation, guidance and warning notices.
Although no evidence was found of actual money laundering or client loss, the SRA determined that the risk of harm was medium due to the nature of conveyancing work. The regulator said the firm’s prolonged failure to maintain compliant AML systems left it vulnerable to criminal exploitation.
The seriousness of the conduct and the assessed level of potential harm placed the case in Band C of the SRA’s penalty framework, corresponding to fines of between 1.6% and 3.2% of a firm’s domestic turnover. Based on Elmhirst Parker’s turnover, the SRA calculated a basic fine of £40,958, which was reduced to £25,000 in recognition of the firm’s cooperation, early admissions and remediation efforts.
The SRA said a fine was appropriate and proportionate to uphold professional standards and public confidence. It added that the sanction served as a “credible deterrent” to other firms that may fail to comply with AML obligations.
In its reasoning, the regulator stated: “The firm’s conduct showed a disregard for statutory and regulatory obligations and had the potential to cause harm. It was incumbent on the firm to meet the requirements set out in the MLRs 2017. The public would expect a firm of solicitors to comply with its legal and regulatory obligations to protect against these risks as a bare minimum.”
The decision has been published in full in line with the SRA’s policy on transparency in regulatory and disciplinary matters. Elmhirst Parker LLP remains authorised to practise and is now considered compliant with the MLRs 2017.