Rothwell and Evans Limited faces fine

Rothwell and Evans Limited, located at The Old Brewery House in Swinton, Manchester, has recently been the subject of a regulatory settlement agreement following significant compliance failures regarding anti-money laundering laws. Launched by the Solicitors Regulation Authority (SRA), an investigation uncovered multiple breaches related to the Money Laundering, Terrorist Financing Regulations 2017, and various SRA Principles and Codes of Conduct. The firm's lack of an adequate firm-wide risk assessment (FWRA) and insufficiently reviewed policies, controls, and procedures (PCPs) spurred the investigation, focusing on their ability to mitigate risks associated with money laundering and terrorist financing.

As part of the settlement, Rothwell and Evans has agreed to pay a financial penalty of £19,013 and the investigation costs amounting to £600. The firm admitted that it had "failed to comply with the MLRs 2017," acknowledging breaches of Outcome 7.5 of the SRA Code of Conduct 2011 and several principles under the SRA Code of Conduct for Firms 2019. Specifically, the firm did not maintain effective governance measures or proper documentation, which are essential for ensuring compliance in areas as risky as conveyancing.

The SRA determined that the firm’s conduct demonstrated a substantial disregard for statutory obligations, presenting a potential risk of facilitating money laundering. “The agreed outcome is proportionate and in the public interest because it creates a credible deterrent to others,” stated the SRA, highlighting the necessity for firms in the legal sector to uphold regulatory standards.

Despite the shortcomings, the SRA noted the firm’s proactive steps following the investigation, revealing a commitment to rectify its failings and comply with the necessary regulations. “We are pleased to see the firm has confirmed it has put in place a compliant FWRA and PCPs,” the SRA remarked, indicating a positive shift towards ensuring adherence to anti-money laundering protocols. The decision to publish this settlement reinforces the SRA's commitment to transparency and maintaining public confidence in the legal profession.