The Solicitors Regulation Authority (SRA) has issued fines totaling £76,138 to a solicitor and four law firms as part of its ongoing efforts to address breaches of anti-money laundering (AML) regulations.
David Partington, a partner at Manchester firm Ogden Lyles & Fox, was fined £11,013 for permitting the firm’s client account to be utilized for payments and transfers related to his and his family’s conveyancing matters, which were unrelated to any underlying legal transactions. These actions occurred across at least six files between 2013 and 2021. Additionally, Mr. Partington facilitated loans from a family member to clients using funds held by the firm, without providing adequate documentation or advising clients to seek independent legal advice.
The SRA highlighted Mr. Partington’s failure to conduct proper client due diligence during a property sale transaction in 2018-2019, where he represented both parties without appropriate authorization and failed to verify identity documents.
Obaseki & Co, a North London firm, received a £9,000 fine for various breaches of AML rules, including inadequate client due diligence and improper handling of client funds. Fairhurst Menuhin & Co in Essex faced a fine of £23,930 for lacking sufficient policies and procedures to address money laundering risks between 2017 and 2022. Austen Jones Solicitors in South-East London received a fine of £15,202 for failing to conduct a firm-wide risk assessment and implement necessary policies and training over a five-year period. Lastly, Stevenage firm David Barney & Co was fined £17,223 for not having appropriate documentation in place to prevent money laundering and terrorist financing activities as mandated by regulations.
These fines reflect the SRA’s commitment to enforcing compliance with AML regulations within the legal profession, with penalties imposed based on the severity and duration of the breaches, as well as efforts made by the firms to rectify the issues and mitigate potential harm.
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