Regulator found deficiencies in AML controls, risk assessments and source of funds checks
A London-based law firm has agreed to pay a £25,000 financial penalty after the Solicitors Regulation Authority (SRA) identified multiple failures in its anti-money laundering (AML) compliance arrangements.
Rooks Rider Solicitors LLP, based in Dowgate Hill, London, entered into a regulatory settlement agreement with the SRA on 20 June 2026. The agreement was published on 23 June 2026 following an investigation triggered by a desk-based review carried out by the regulator’s AML Proactive Supervision Team.
According to the SRA, the investigation uncovered concerns relating to the firm’s compliance with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017, as well as requirements contained within the SRA’s regulatory framework.
The regulator found that the firm failed to maintain a compliant firm-wide risk assessment (FWRA) between 26 June 2017 and 16 February 2024. During its review, the SRA examined historic versions of the firm’s risk assessments and concluded that documents used before 2024 did not adequately identify and assess the key risk factors required under the regulations.
The investigation also identified shortcomings in the firm’s policies, controls and procedures. While the firm had anti-money laundering policies in place, the SRA found that they had not been updated to reflect the 2017 regulations until January 2022. The SRA said the firm’s policies continued to rely on the previous Money Laundering Regulations 2007 and contained outdated legislative references. Earlier documents continued to rely on outdated legislative requirements and lacked information required under the current regulatory regime.
As part of its review, the SRA examined six client files and found an inadequate source of funds evidence on three matters. All three files related to residential property purchases. The regulator said substantial sums had been received into the firm’s client account without sufficient evidence or documentation to establish the origin of those funds.
Conveyancing is considered a higher-risk area for money laundering, and the SRA stated that firms should obtain and scrutinise appropriate documentation to verify the source of funds used in transactions.
The firm subsequently confirmed that it had provided additional training to fee earners and had implemented measures to ensure appropriate source of funds checks are now being carried out on relevant matters.
Rooks Rider Solicitors LLP admitted breaching several regulatory obligations arising from its failure to comply with anti-money laundering requirements. The SRA concluded that the firm’s conduct demonstrated a disregard for statutory and regulatory obligations and had the potential to create risks associated with money laundering or terrorist financing.
When determining the sanction, the regulator took into account the firm’s cooperation during the investigation and the remedial steps it had taken before the review concluded. The SRA calculated a basic financial penalty of £36,300 before reducing it to £25,000 to reflect the firm’s cooperation, remedial action and the regulator’s discretion under its published fining guidance.
In addition to the financial penalty, the firm agreed to pay £600 towards the costs of the investigation.