A US-based international firm with an office in London’s Square Mile has become the latest to be charged with money laundering compliance offences.
The Solicitors Regulation Authority revealed yesterday that it is prosecuting Simpson Thacher & Bartlett LLP after finding a case to answer over historic compliance with money laundering regulations.
It is alleged that the London office failed to have a compliant firm-wide risk assessment between 2017 and 2023 and during the same period failed to have in place compliant policies, controls or procedures as required.
It is further alleged that between 2017 and 2022 the firm failed to have a compliant risk assessment in relation to four files.
The allegations are subject to a hearing before the Solicitors Disciplinary Tribunal and are as yet unproven.
The case is similar to that brought against more than a dozen firms already this year which have each resulted in fines up to £25,000, based on the firm’s turnover. Where the potential fine is likely to exceed that amount, cases are transferred to the SDT.
In a statement the firm said it is ‘disappointed’ that the SRA has decided to bring proceedings in relation to certain alleged historic AML compliance shortcomings concerning some written policies and procedures.
A spokesperson said: ‘At no point did any money laundering occur nor was there any harm to clients or third parties in connection with the alleged shortcomings. We fully cooperated with the SRA during its investigation, and we are confident in our comprehensive compliance operations. We are unable to comment further due to the ongoing proceedings.’
It is understood that – unlike many of the other firms which have been charged with AML compliance offences – the firm’s client base and range of legal services are recognised as presenting a low risk of facilitating money laundering. The firm does not undertake any conveyancing work and does not operate a client account.
It is understood that the firm argues it is fully compliant with all AML obligations and has invested heavily in recent years in compliance and AML processes.
