UK law firm Clyde & Co. fined for breaching anti-money laundering regulations

The UK law firm Clyde & Co. has admitted to breaching British anti-money laundering regulations and will pay a substantial fine as a result. The firm self-reported the matter in question in early 2019, leading to an investigation by the UK’s Solicitors Regulation Authority (SRA). The investigation focused on potential money laundering due diligence failures by Clyde & Co. and one of its former shipping partners, Ed Mills-Web. Mills-Web ultimately resigned, along with four senior colleagues, and they set up a new legal consultancy, Preston Turnbull LLP, focused on shipping disputes.

The SRA ultimately charged both Mills-Web and Clyde & Co. with breaches of money laundering regulations and procedures relating to a client and companies used by the client. Both parties admitted to the breaches and agreed to pay fines of $125,000 and $19,000 respectively. This is the second SRA enforcement action against Clyde & Co. since 2017, when three of its partners were fined and the firm was ordered to pay about $60,000 in connection with other alleged money-laundering breaches.

Under the UK’s new Economic Crime and Corporate Transparency Act, the SRA can now impose unlimited fines on law firms or solicitors in connection with economic-crime cases, and Clyde & Co. warned solicitors to abide by the legislation to avoid being struck off or imprisoned.

Source .