News / Legal Firm in UK hit with £22k fine for AML breaches

Legal Firm in UK hit with £22k fine for AML breaches

GD legal has been fined £21,843 by the Solicitors Regulation Authority (SRA) for breaching the AML framework including improper risk assessment and AML policies.

03 min read

The Legal Practice “GD Legal Solicitors Ltd” based in Manchester, has been fined £21,843 by the Solicitors Regulation Authority (SRA) for non-compliance with anti-money laundering (AML) laws.

Inspection Reveals Multiple AML Compliance Failures

Regulators have identified numerous deficiencies in the AML frameworks of firms, particularly in the areas of risk assessment, controls, AML policies, and regulations.

Following inquiries, SRA discovered that GD legal had failed to provide the paperwork to comply with money laundering regulations.

Additionally, the SRA disclosed that the company had been engaged in “conveyancing work” since 2019 and was currently under investigation in 2023.

Due to its findings, deficiencies in AML compliance strategies were highlighted, and a referral to the special SRA AML team was made.

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Violation of SRA Principles

The company had breached “three SRA principles” and failed to maintain documentation about AML compliance, which was identified during SRA oversight in 2019.

SRA has been concerned about the legal firm’s operations, as it primarily deals with property sale/ purchase related legal work and is not fulfilling AML requirements.

These rules have been breached for an extended period of time and now can negatively impact the public, causing them to lose trust in legal firms and this profession.

Remedial Action of GD Legal

GD Legal has cooperated with SRA by complying with its recommendations and making amendments in its defense.

No serious damage has been reported to customers after violating these AML regulations.

GD Legal has been fined 2.4% of its yearly profit, in addition to £1,350 for other costs.

What Could Have Been Done?

Under such scenarios, legal firms like GD may better oblige with AML regulatory requirements by using AML solutions that offer targeted screening with custom risk scoring.

Contact us to discuss more about your compliance needs.

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