Tribunal finds Peter Gerber reckless in AML breaches, issues damning sanction

Peter Gerber was found reckless and lacking integrity after AML breaches and banking misuse for a client

Peter Kenneth Felton Gerber, a practising solicitor, has been sanctioned by the Solicitors Disciplinary Tribunal after being found to have acted recklessly and without integrity in his handling of anti-money laundering (AML) obligations and client account use.

The Tribunal found that although Gerber was not dishonest, his conduct fell significantly below the standards expected of a solicitor. At the heart of the case was his submission of declarations stating compliance with the AML regulations when, in fact, he had not fully met those requirements.

In evidence, Gerber claimed that at the time he submitted the declarations, he genuinely believed he was compliant. He later admitted to the Solicitors Regulation Authority (SRA) that he had failed in key areas and accepted responsibility during his interview. He also took remedial steps once these failings were brought to light.

Despite this, the Tribunal ruled that his conduct was reckless and lacked integrity. They found that he had been overly confident in assuming compliance, particularly in circumstances where he had not taken the basic step of checking the relevant AML rules. Furthermore, the Tribunal criticised his failure to implement the necessary written AML policies and carry out a firm-wide risk assessment in a timely manner.

In addition to the AML breaches, Gerber had also facilitated the use of his client account as a banking facility — a clear violation of established rules. The SRA’s investigation highlighted that Gerber allowed funds to pass through the firm’s account without there being an underlying legal transaction. This, the Tribunal noted, is a misuse of the client account and carries significant regulatory consequences due to the risk of enabling money laundering or financial misconduct.

The Tribunal reinforced that solicitors are expected not only to be familiar with their regulatory obligations but also to be proactive in updating their knowledge and ensuring full compliance. In this case, Gerber had fallen short of those expectations. His failure to act with the necessary diligence and urgency was deemed unacceptable for a solicitor in his position.

Though the Tribunal acknowledged that Gerber had not acted dishonestly and had taken corrective action, the seriousness of the breaches could not be overlooked. The findings reflect an increasing emphasis by the SRA and the Tribunal on holding individuals accountable for failures to meet AML standards, especially in light of heightened risks and regulatory scrutiny in the legal sector.

The Tribunal imposed a financial penalty, the amount of which reflects the gravity of the misconduct. (Note: Fine amount not stated in provided text — please confirm if you wish it included.)

This ruling adds to a growing list of disciplinary cases targeting solicitors who provide banking facilities to clients or fail to maintain rigorous AML controls. It sends a clear message: assumptions about compliance are no substitute for documented proof and procedural rigour.