A recognised firm has been fined after an SRA investigation uncovered multiple AML compliance breaches
A London-based law firm has been fined £25,000 after entering into a regulatory settlement agreement with the Solicitors Regulation Authority over serious failures to comply with anti-money laundering requirements.
The agreement, dated 13 January 2026 and published on 15 January 2026, followed an investigation into William Heath & Co And Skelly & Corsellis, a recognised body based at 16 Sale Place, Sussex Gardens, London W2 1PX. The investigation was triggered by a desk-based review carried out by the SRA’s AML Proactive Supervision team.
According to the regulator, the review identified multiple areas of concern relating to the firm’s compliance with the Money Laundering Regulations 2017, as well as the SRA Principles and the SRA Code of Conduct for Firms.
In six client files examined, the firm failed to carry out client and matter risk assessments, as required under regulations 28(12) and 28(13) of the regulations. The SRA said the absence of these assessments meant the firm had not properly identified or evaluated the money laundering and terrorist financing risks posed by individual clients and matters.
The regulator also found deficiencies in the firm’s approach to source of funds checks. In four of the six files reviewed, there was no evidence of ongoing monitoring or scrutiny of the origin of funds involved in transactions, contrary to regulation 28(11)(a). The SRA said such checks are central to an effective risk-based approach to preventing financial crime.
Following engagement with the regulator, the firm reviewed all active files within scope of the regulations and confirmed that client and matter risk assessments had since been completed. The firm also provided confirmation that fee earners had received training on source of funds requirements.
As part of the settlement, the firm admitted breaches of the SRA Principles and Code of Conduct spanning two regulatory regimes. These included failures to maintain public trust, ensure effective governance, and comply with applicable legislation between June 2017 and November 2024.
In determining the sanction, the SRA said the misconduct was more serious in nature due to a pattern of control failings over several years. The impact was assessed as medium, reflecting the increased risk of the firm being used to facilitate money laundering, particularly given that more than half of its work involved conveyancing, which the regulator describes as a high-risk area.
The agreed outcome requires the firm to pay a £25,000 fine, £600 in investigation costs, and to consent to the publication of the agreement. The SRA said the sanction was proportionate and necessary in the public interest to uphold professional standards and deter similar breaches across the legal sector.