Regulator identifies AML and accounting breaches during compliance investigation
The Solicitors Regulation Authority (SRA) has fined Regency Solicitors £6,000 following an investigation into anti-money laundering compliance failures and accounting breaches spanning several years. The regulatory settlement agreement was reached on 21 April 2026 and published by the SRA on 7 May 2026.
According to the agreement, the firm, based in Waltham Abbey, Essex, admitted multiple breaches connected to the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017, as well as failures under the SRA Accounts Rules and professional conduct requirements.
The SRA investigation followed a review carried out by its anti-money laundering proactive supervision team. Investigators identified deficiencies in the firm’s firm-wide risk assessment (FWRA) and failures to establish and maintain compliant policies, controls, and procedures relating to money laundering risks.
The regulator stated that between June 2017 and January 2026, the firm failed to maintain an appropriate risk assessment identifying and assessing money laundering risks across its practice. The SRA also found that between June 2017 and January 2026, the firm failed to establish and regularly update policies and procedures designed to manage risks linked to money laundering and terrorist financing.
In addition, the regulator identified breaches of the SRA Accounts Rules in three of six client files reviewed during the investigation. The firm failed to maintain accurate and contemporaneous records relating to client money transactions on client ledgers. The agreement stated that over 80% of the firm’s work involved conveyancing, an area regarded by regulators as particularly vulnerable to money laundering due to the large sums of money involved in property transactions.
The SRA said the misconduct demonstrated a persistent disregard for regulatory obligations over an extended period. However, the regulator accepted that there was no evidence of direct consumer harm or financial loss to clients.
As part of the mitigation presented to the SRA, the firm stated that it had taken steps to rectify the issues and implement a compliant anti-money laundering control environment. The firm also cooperated with the regulator’s supervision and investigations teams throughout the process.
Alongside the £6,000 financial penalty, Regency Solicitors agreed to pay £600 in investigation costs. The SRA said publication of the agreement was appropriate in the public interest and necessary to maintain transparency in the regulatory process.