Baron Grey Solicitors admits multiple AML breaches and agrees to £18k fine and £600 costs
Baron Grey Limited (Baron Grey Solicitors), a recognised body regulated by the Solicitors Regulation Authority (SRA), has reached a regulatory settlement agreement and will pay a financial penalty of £17,866 for serious anti-money laundering (AML) failings. In addition to the fine, the firm will also cover the £600 cost of the SRA’s investigation.
The SRA’s investigation followed an inspection by its AML Proactive Supervision Team, which identified multiple deficiencies in the firm’s compliance with the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017), as well as breaches of the SRA Code of Conduct. The failures included inadequate client due diligence (CDD), including failures to conduct proper identification and verification (ID&V) of clients and ultimate beneficial owners (UBOs) in several files. The firm also failed to scrutinise transactions and source of funds (SoF) in numerous other cases, and failed to carry out ongoing monitoring of client matters.
The SRA highlighted that Baron Grey Limited’s deficiencies were particularly significant given that a large proportion of its work is in the high-risk area of conveyancing, which is susceptible to money laundering and terrorist financing. Despite these serious failures, the firm has taken steps to rectify its compliance shortcomings and is now fully compliant with the MLRs 2017, having implemented new policies and provided staff training in response to the investigation.
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The firm admitted its failings, and the SRA accepted these admissions. The penalty was calculated based on the seriousness of the misconduct, which included the firm’s persistent disregard for regulatory obligations. However, the SRA did consider mitigating factors, such as the firm’s cooperation with the investigation and the corrective measures it has taken since the breaches were identified. As a result, the financial penalty was reduced from the base penalty of £19,851 to £17,866.
The SRA determined that a fine was appropriate to maintain professional standards and deter others in the sector from failing to comply with anti-money laundering laws. The firm was also required to pay the costs of the investigation in the amount of £600.
In accordance with the SRA’s regulatory procedures, the outcome of this settlement agreement will be published to ensure transparency and reinforce the importance of complying with anti-money laundering regulations. Baron Grey Limited has agreed not to deny the admissions made in the agreement, and any inconsistent actions could result in further disciplinary action.
The firm’s failure to meet regulatory standards in this case highlights the critical importance of ensuring proper AML controls are in place, particularly for firms working in high-risk areas like conveyancing. The SRA has emphasised that such breaches have the potential to harm the legal profession’s reputation and public trust.