LONDON (WithinTheLaw) - Law Gazette: The Solicitors Regulation Authority will be running spot checks on firms’ anti money laundering policies as it steps up its campaign against corporate misconduct.
In doing so, the regulator is following the lead set by the FCA in ramping up its efforts to crack down on money laundering. As part of this, the regulator says it will expand visits to every high risk firm on a three year rolling basis as well as visiting a sample of low risk firms. Their plans have been revealed in their recently published draft business plan 2020/21, which includes increasing its allocation for AML from 2.5% to 3% of its overall budget.
The move comes after concerns were raised that solicitors, often unknowingly, were being used as venues for money laundering to support organised crime and terrorism. A review from 2019 found that more than a third of firms had not carried out a full risk assessment and half of reports received by the SRA found a firm had not carried out sufficient due diligence.
Consultation on the business plan runs until 26 August 2020.
(Written by Tom Cropper, edited by Michael O’Sullivan)