Pre-Mishcon Taylor Vinters fined £173k over AML failures

The SRA has fined legacy firm Taylor Vinters more than £170,000 for anti-money laundering (AML) failings after it failed to flag a politically exposed person (PEP) on a property deal.

Background

The breach dates back to 2017, when the Cambridge tech-focused firm acted for a company buying UK residential property. That company’s beneficial owner turned out to be a foreign-based PEP, but the firm didn’t catch it until two months after the deal closed.

The SRA also found that Taylor Vinters incorrectly confirmed to another firm that it had verified the identity of the buyer and that they were not a PEP.

This amounted to a breach of the Money Laundering Regulations 2007, which require enhanced checks when acting for PEPs - including approval from the firm’s senior management and adequate checks into the source of wealth and funds involved.

The SRA found the firm in breach of its code of conduct and governance principles. It said a fine was appropriate to maintain professional standards and uphold public confidence in the profession.

Taylor Vinters was later fully absorbed into Mishcon de Reya when the two firms completed their merger in 2023.

Outcome

The regulator imposed a fine of £172,934 - a 30% reduction from the £247,000 originally calculated due to early admissions and full cooperation.

The SRA typically refers fines above £25,000 to the Solicitors Disciplinary Tribunal, but Taylor Vinters’ status as an alternative business structure meant it could impose the penalty directly.

Bigger picture

The penalty comes amid increasingly strict AML enforcement by the regulator. In March, Simpson Thacher agreed to a £300,000 settlement for failing to have fully compliant policies and controls in place between 2017 and 2023, while Clyde & Co was hit with a record £500,000 fine last January.