Law Soc Gazette
The regulator has issued one of its biggest anti-money laundering fines yet against a firm that failed to comply with the rules for six years.
Inspectors assessed six files handled by Manchester firm Nexus Solicitors and found none which contained a compliant risk assessment. This was despite the firm’s staff handbook referring to a risk assessment and due diligence form and setting out a process for checking clients.
The Solicitors Regulation Authority said that the firm failed to document any risk assessment or provide a clear audit trail of the decision-making process, methods and rationale. Based on the six randomly-selected files, it was evident that staff were not following proper processes from 2017 onwards.
On four matters, Nexus also failed to comply with its obligations around source of client funds checks. These files had involved foreign nationals and showed red flags on an e-verification report, but there was a lack of scrutiny about where clients resided or where their money was coming from.
