SRA finds prolonged absence of compliant AML framework, despite no evidence of client loss
The Solicitors Regulation Authority has fined Riley Langdon Solicitors £2,757 after identifying long-running failures in its anti-money laundering (AML) compliance.
The penalty was agreed as part of a regulatory settlement, with the firm also required to pay the costs of the investigation of £600.
The SRA found that, between June 2017 and December 2025, the firm failed to maintain an adequate firm-wide risk assessment, a key requirement under the Money Laundering Regulations 2017. Such assessments are designed to ensure firms understand and manage the risks of money laundering and terrorist financing within their business.
According to the regulator, the absence of a compliant risk assessment meant the firm did not have a proper framework in place to identify and mitigate financial crime risks over an extended period.
The SRA said the failure amounted to a disregard of regulatory obligations and created the potential for harm, even though no evidence of actual loss to clients was identified.
The firm admitted breaches of the SRA Principles, the Code of Conduct and its statutory obligations under the money laundering regime.
In reaching its decision, the regulator noted that the misconduct persisted for several years, underlining the importance it places on firms maintaining effective systems and controls to prevent financial crime.
However, the SRA took into account a number of mitigating factors, including the firm’s cooperation with the investigation and the steps it had taken to remedy the deficiencies once they were identified.
The regulator concluded that a financial penalty was appropriate to uphold professional standards and maintain public confidence in the legal profession.
The case serves as a reminder that firms are expected to have robust AML frameworks in place at all times, and that prolonged compliance failures may result in enforcement action even in the absence of proven harm.