Simpson Thacher & Bartlett, a prominent U.S.-based law firm, has agreed to pay a fine of £300,000 ($389,069) following violations of anti-money laundering (AML) regulations at its London office.
The firm reached a settlement with the Solicitors Regulation Authority (SRA), the regulatory body overseeing solicitors in England and Wales. As part of the settlement, Simpson Thacher will also contribute £62,000 towards the SRA’s legal costs.
The breaches stemmed from the firm’s failure to maintain a comprehensive firm-wide risk assessment between June 2017 and March 2020, as required by UK money laundering laws.
Simpson Thacher further acknowledged that it did not implement a fully-compliant risk assessment between March 2020 and February 2023. These lapses were brought to light following an SRA regulatory investigation initiated in August 2023.
While the SRA clarified that no actual money laundering occurred, it emphasized that the deficiencies in Simpson Thacher’s compliance policies heightened the risk of illicit activities.
The regulator underscored the crucial role law firms play in safeguarding the legal profession and the broader UK economy from criminal exploitation.
A spokesperson for Simpson Thacher expressed regret over the shortcomings in the firm’s historic AML policies. The firm emphasized that it has since taken substantial steps to strengthen its compliance measures, ensuring such oversights do not recur.
The fine against Simpson Thacher follows a series of similar actions against major law firms for failing to adhere to anti-money laundering regulations. In 2024, Clyde & Co, another global law firm, was fined £500,000 for violations tied to a long-standing client.
The SRA reiterated the importance of robust money laundering prevention systems, with a spokesperson noting, “Money laundering is not a victimless crime. Solicitors play a vital role in protecting the legal profession and the wider economy from criminal proceeds.”
As Simpson Thacher works to enhance its compliance infrastructure, this case serves as a reminder to law firms worldwide of the need for rigorous anti-money laundering policies to prevent criminal activity within the legal sector.
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