Firm admits AML compliance breaches and agrees to £7,263 fine plus £600 costs
The Solicitors Regulation Authority has fined Norton Connor Limited, trading as Norton Connor Solicitors, a Leeds-based firm, £7,263 after finding failures in its compliance with the Money Laundering Regulations 2017. The penalty, imposed under Rule 3.1(b) of the SRA Regulatory and Disciplinary Procedure Rules, forms part of a Regulatory Settlement Agreement concluded on 25 September 2025 and published on 14 October 2025. The firm has also been ordered to pay £600 towards investigation costs.
The SRA began its investigation following an inspection by its Anti–Money Laundering (AML) Proactive Supervision Team, which identified concerns regarding the firm’s adherence to statutory and regulatory duties. The inspection revealed that in six client files, Norton Connor had failed to conduct client and matter risk assessments (CMRAs) as required by Regulations 28(12)(a)(ii) and 28(13) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
In addition, the SRA found that the firm did not follow or implement its own internal policies, controls and procedures (PCPs) on six matters, contrary to Regulation 19(3)(e) of the MLRs 2017. The regulator concluded that these failures demonstrated insufficient governance and control at file level in a high-risk practice area — conveyancing — where the risk of abuse for money laundering or terrorist financing is particularly acute.
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The SRA determined that the firm’s conduct breached several key provisions of its regulatory framework, including Principle 2 of the SRA Principles 2019, which requires solicitors and firms to uphold public trust and confidence in the profession. The firm also breached paragraphs 2.1(a), 2.2 and 3.1 of the SRA Code of Conduct for Firms, which require effective governance systems, the keeping of compliance records, and adherence to the law and regulation governing the way firms work.
In mitigation, the SRA noted that Norton Connor cooperated fully with both the Proactive Supervision and Investigation teams and took steps to rectify its failings. The firm reviewed all live in-scope files to ensure completed risk assessments were present and provided evidence of staff training on completing CMRAs and source of funds checks. The regulator confirmed that, at the time of the inspection, the firm’s existing policies and risk assessment templates were compliant, reducing exposure to ongoing risk.
The SRA stated that the fine was appropriate to maintain public confidence and act as a deterrent to others. While there was no evidence of client loss or actual harm, the regulator emphasised that the firm’s disregard for statutory obligations had the potential to cause serious harm and undermine AML safeguards. The SRA observed that the firm’s compliance gaps only came to light as a result of its inspection and that the failures represented recklessness and a lack of sufficient regard for money laundering regulations and published guidance.
According to the SRA’s financial penalty guidance, the misconduct was assessed as “more serious” (score of three), due to its persistent nature and the firm’s delay in achieving compliance until April 2025 — nearly eight years after the introduction of the 2017 Regulations. The potential for harm was assessed as medium (score of four), given the firm’s conveyancing work, placing the case within Band C of the SRA’s penalty framework.
After mitigation, the basic penalty of £8,544 was reduced to £7,263 to reflect the firm’s cooperation, early admissions, and remedial action. The SRA found that Norton Connor had not derived any financial gain from its failings, so no further adjustment was applied.
The regulator concluded that publication of the agreement was in the public interest and consistent with Rule 9.2 of the SRA Regulatory and Disciplinary Procedure Rules, as there were no exceptional circumstances to outweigh transparency. The SRA said the outcome demonstrates the need for firms to maintain up-to-date AML compliance and to ensure that risk assessments are properly documented and followed at all times