.png)
.png)
Coventry-based law firm Band Hatton Button (BHB) has been fined just over £46,000 for non-compliance with Anti-Money Laundering (AML) regulations, marking one of the largest penalties issued by the Solicitors Regulation Authority (SRA) to date.
While the SRA typically has a £25,000 fining limit, it was able to surpass this threshold due to BHB's status as an "alternative" business structure.
In a regulatory settlement agreement, the SRA detailed that between June 2017 and February 2018, BHB did not maintain a firm-wide risk assessment. Moreover, when the firm eventually implemented this assessment, it did not comply with the 2017 Money Laundering Regulations.
The SRA's inspection further revealed that from 2017 to 2023, BHB lacked an independent audit function. A review of specific client files during this period found deficiencies in five files, which did not contain a client and matter risk assessment, and two files that lacked adequate source-of-funds checks.
BHB admitted to failing to comply with all of the SRA’s regulatory arrangements and acknowledged its lapse in keeping up to date with regulations. The SRA noted several mitigating factors, including BHB's prompt compliance within two months of receiving feedback from the regulator and its full cooperation throughout the process.
“The firm recognises that it failed in its basic duties regarding statutory money laundering regulations and regulatory compliance, as identified during our inspection and subsequent investigation,” stated the SRA. “The firm has cooperated fully with us, admitted the breaches, shown remorse and remedied the breaches, and there is a low risk of repetition.”
Initially, the SRA intended to fine BHB £77,412, which represents 1.6% of the firm’s £4.8 million domestic turnover. However, this amount was reduced by 40% to £46,447, considering the mitigation and BHB’s cooperation.
At the time of publication, BHB had not immediately responded to a request for comment.
By fLEXI tEAM
Comments