Simpson Thacher & Bartlett Fined £300,000 for Anti-Money Laundering Breaches

U.S. law firm Simpson Thacher & Bartlett has been fined £300,000 ($389,069) for breaches of anti-money laundering (AML) regulations at its London office, following an investigation by the Solicitors Regulation Authority (SRA).

As part of a settlement reached with the SRA, the firm also agreed to pay £62,000 towards the regulator’s legal costs.

Simpson Thacher admitted to failing to maintain a firm-wide risk assessment between June 2017 and March 2020, a requirement under British money laundering laws. Additionally, the firm acknowledged that from March 2020 to February 2023, its risk assessment was not fully compliant with regulatory standards. The SRA had initiated its regulatory case against the firm in August.

Although the SRA did not allege that these breaches directly led to money laundering, the regulator stated in court filings that the firm’s failings created “an increased risk of money laundering.”

A spokesperson for Simpson Thacher stated that the London office “acknowledges and regrets certain historic shortcomings in some of our UK AML (anti-money laundering) written policies.” The spokesperson further emphasized that the firm has since “made significant investments to enhance our robust compliance function.”

An SRA spokesperson underscored the importance of legal professionals maintaining strong anti-money laundering controls. “Money laundering is not a victimless crime and can have detrimental effects on many, many people,” they said. “Solicitors have an important role to play in keeping the profits of crime out of the profession and the wider UK economy.”

Simpson Thacher is the latest major law firm to face regulatory action over breaches of money laundering rules. Last year, global law firm Clyde & Co was fined £500,000 after admitting multiple violations related to a long-standing client.

Meanwhile, the SRA’s case against another global firm, Dentons, was initially dismissed by the Solicitors Disciplinary Tribunal in March. However, an appeal overturned that decision on Tuesday, and the case has now been sent back to the tribunal for further consideration.

By fLEXI tEAM