Harrowell & Atkins faces financial penalty
Harrowell & Atkins has reached a regulatory settlement agreement with the SRA, resulting in a £25,000 fine
Harrowell & Atkins, a recognised body based in Berkhamstead, has entered into a regulatory settlement agreement with the Solicitors Regulation Authority (SRA). The decision, published on 14 July 2025, follows an investigation led by the SRA's Anti-Money Laundering (AML) Proactive Supervision team. The firm will be paying a financial penalty of £25,000 for multiple compliance failures related to the Money Laundering Regulations 2017, and additionally, it will cover investigation costs amounting to £600.
The SRA's investigation revealed significant shortcomings in the firm's AML controls, specifically regarding firm-wide risk assessments, customer due diligence, and necessary documentation practices. Affected practices spanned several years, calling into question the firm's ability to manage potential risks associated with money laundering and terrorist financing. "The issues...are serious AML control environment failings, and the conduct had the potential to cause significant harm," stated the report detailing the investigation's findings.
The numerous breaches included the absence of a documented firm-wide risk assessment between 2017 and 2024, inadequacies in policies and procedures established before and during the assessment period, as well as insufficient client and matter risk assessments on various cases. The SRA noted that these lapses were serious due to the firm's focus on conveyancing, which is exposed to a higher risk of exploitation for illegal purposes.
As part of the settlement, Harrowell & Atkins has admitted to its breaches, demonstrating both remorse and cooperation throughout the investigation process. The fine was deemed appropriate not only for the breaches committed but also as a necessary deterrent for other firms in the legal profession. The firm has agreed to implement the necessary changes and to ensure compliance with the regulations moving forward.
The outcome underscores the critical need for legal firms to maintain robust anti-money laundering procedures and demonstrates the SRA's commitment to upholding compliance within the sector.