Breached anti-money laundering rules
The Solicitors Regulation Authority (SRA) has fined legacy firm Taylor Vinters nearly £173,000 after it failed to flag a politically exposed person (PEP) involved in a 2017 property deal.
The Cambridge-based firm, which has since merged with London outfit Mishcon de Reya, acted for a company associated with foreign national in the purchase of a UK residential property. Under anti-money laundering (AML) rules in force at the time, the firm should have identified the individual as a non-domestic PEP and conducted enhanced due diligence, including senior management sign-off and checks into the source of wealth and funds.
Instead, the firm didn’t identify the client’s PEP status until two months after the transaction had completed. It also incorrectly assured another firm in the deal that the buyer’s identity had been verified and they weren’t a PEP.
The SRA said the failures breached both AML regulations and the SRA’s code of conduct and governance principles. It described the firm’s conduct as a significant lapse with the potential to expose the profession to serious risks.
“It is in the public interest that firms ensure compliance with the money laundering regulations,” the regulator said. “A failure to do so has the potential to cause significant harm by exposing the firm to the risk that its services will be used to carry out money laundering or terrorist financing.”
Taylor Vinters, which focused on the tech and innovation sector before being absorbed into Mishcon de Reya in 2023, admitted to the breaches and cooperated fully with the investigation. The fine was initially set at around £247,000 but was reduced by 30% to £172,934 to reflect early admissions and cooperation.
Although fines over £25,000 are typically referred to the Solicitors Disciplinary Tribunal, the SRA was able to impose the penalty directly because Taylor Vinters operated as an alternative business structure (ABS).
A spokesperson for Mishcon said:
“The SRA has announced a fine against Taylor Vinters relating to errors made in 2017 under their legacy systems. We are pleased the SRA reduced its basic fine to account for early admissions and full cooperation with the investigation.”
