Another fine. Another firm caught out by the Money Laundering Regs 2017

In January 2026, the SRA published its decision to fine HMG Law LLP £25,000 for systemic failings. The gap between the 2017 Regulations and actual firm practice is widening.

Findings included:

Policies, Controls and Procedures  (PCPs)– the firm failed to regularly review and update PCPs, thus failing to meet regulation 19 (1) (b) MLR’s 2017 between July 2019 and 29 August 2025. In 6 files, the firm failed to implement its own PCPs in line with Reg 19 (3) (e).

Firm Wide Risk Assessments (FWRA) -  failed to meet Reg 18 (4) and reg 18 (6) of the MLRs 2017 and did not assess the money laundering and terrorist financing risks the firm could be subject to.

Client Matter Risk Assessments (CMRA) - 6 files firms failed to conduct CMRAs Reg 28 (12) (a) (ii) and Reg 28 (13) of MLRs 2017

We are seeing the same themes in 2026 that haunted 2025. I recently broke this down for ICA inCOMPLIANCE here: Why law firms are falling foul of the law https://www.int-comp.org/insight/why-law-firms-are-falling-foul-of-the-law/

With the transfer of powers to the FCA looming, "data-driven enforcement" isn't just a buzzword, it’s becoming the standard. If your risk assessments are still "gut feel" or generic templates, you are a target.

I built the 2026 Law-Firm Compliance Toolkit specifically to close this gap.
✅ Weighted 1–3 scoring system.
✅ Defensible audit trail generated in seconds.
✅ Fully aligned with the latest LSAG & MLR updates.

Is your firm ready for the FCA's data-led approach? Let’s fix the gap before the regulator does.

DOWNLOAD HERE:
Law‑Firm Compliance Toolkit — LSAG‑Aligned AML Framework for SRA‑Regulated Firms — BSAH

MESSAGE ME:
Need Help Now | Get Help Now—Resolve Issues Today — BSAH

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