SRA fines Morgan Kelly Solicitors £4,407 plus costs for Anti-Money Laundering failings
Morgan Kelly Solicitors Limited has been fined for multiple breaches of anti-money laundering regulations, following an investigation by the Solicitors Regulation Authority (SRA).
The firm, based at Pippingford Manor, Pippingford Park, Nutley, admitted failures to comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017). As part of a regulatory settlement agreement, the SRA imposed a financial penalty of £4,407 and ordered the firm to pay £600 in investigation costs.
The investigation followed a desk-based review conducted by the SRA’s Anti-Money Laundering (AML) Proactive Supervision team. The regulator found that between 26 June 2017 and 8 May 2025, Morgan Kelly Solicitors failed to carry out adequate firm-wide risk assessments and did not maintain compliant policies, controls, and procedures to mitigate the risks of money laundering and terrorist financing.
Embed from Getty ImagesThe SRA noted that despite guidance and a formal warning notice issued in May 2019 and updated later that year, the firm continued to operate without effective safeguards. This left the business exposed to potential money laundering risks, particularly in relation to conveyancing, which makes up the majority of its work.
The breaches covered two separate regulatory frameworks. For conduct before 25 November 2019, the firm admitted breaching Principles 6 and 8 of the SRA Principles 2011, alongside failures under the SRA Code of Conduct 2011. For conduct after that date, the SRA found breaches of Principle 2 of the SRA Principles 2019, as well as paragraphs 2.1(a) and 3.1 of the SRA Code of Conduct for Firms 2019.
The regulator concluded that the misconduct was serious because it persisted over several years after the requirements came into force. The impact was deemed medium, as the lack of compliant procedures left the firm vulnerable to misuse. However, the SRA accepted that the firm has since put in place fully compliant systems and that the risk of recurrence is minimal.
Mitigating factors included the firm’s cooperation with the investigation, early admissions of breach, and evidence that no clients or third parties suffered harm. The SRA also accepted that the firm did not profit from the misconduct and has expressed remorse.
The SRA said the agreed fine was set at the lower end of the penalty bracket, in line with published guidance. A higher figure of £4,897 was reduced to £4,407 to reflect mitigating circumstances.
In its published decision, the SRA stated: “It was incumbent on the firm to meet the requirements set out in the MLRs 2017 and the firm failed to do so. 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 agreed outcome is a proportionate outcome in the public interest because it creates a credible deterrent to others.”
The firm has now implemented compliant firm-wide risk assessments and controls, with measures in place to ensure future compliance.
The settlement requires Morgan Kelly Solicitors not to deny the admissions made in the agreement. Any future denial or inconsistent conduct may result in further regulatory action or a referral to the Solicitors Disciplinary Tribunal.
The decision was published on 22 September 2025.