We couldn’t launch our inaugural issue of Compl:ex without including mention of AML checks. They are the beginning of every property transaction and in many ways were also catalyst for the creation of Compl:ex.
The SRA recently handed out a penalty of £20,000 to a small firm for failing to have AML policies, training and systems in place. This is its largest fine since raising the threshold from £2,000 to £25,000 last year and demonstrates just how serious the consequences of non-compliance have become…
The deficiencies were discovered by the SRA during an onsite audit to review the firm’s overall AML compliance. It identified areas of concern in relation to compliance as follows:
- Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs), and
- SRA Standards and Regulations 2019
The firm was found to have failed to put in place a compliant, firm-wide AML risk assessment until mid-2022, that’s over five years since the requirement was introduced in June 2017. The SRA admitted there was no harm to consumers or third parties, but the lack of a compliant firm-wide risk assessment justified the hefty fine.
This case demonstrates the costly consequences of not complying with AML obligations which brings us full circle back to the inception of Compl:ex. Love them or loathe them, AMLs are now the first step in every property transaction and obligations to fulfil them cannot be ignored. But we don’t want our conveyancing clients biting their nails in bed every evening wondering if a check has been missed and what the breakfast menu is like in Wormwood Scrubs (avocado on toast doesn’t feature). So we created Compl:ex to ensure that you are fully informed of all the latest compliance regulations – those you must be undertaking and those you need to be mindful of.
There are a few simple steps which small firms can take to protect against AML penalties such as implementing a robust compliance system and putting the right checks in place. Our expert local teams would welcome the opportunity to talk you through these. If you also happen to choose X-Press Legal Services products to support you in staying compliant, great. If not, we hope this regular dose of Compl:ex will at least ensure you sleep soundly at night.