Breaking News! Top UK Law Firm Hand A Record Fine For Breaching Money Laundering Rules

Breaking News! Top UK Law Firm Hand A Record Fine For Breaching Money Laundering Rules!

Mishcon de Reya, has been handed a record fine for "serious breaches" of money laundering rules. The London-based company has agreed to pay £232,500 in fines and an additional PS50,000 in costs in an investigation by the Solicitors Regulation Authority (SRA). In its ruling issued on Wednesday, the regulator said Michonne Drelli's actions "could cause significant harm by facilitating transactions that lead to money laundering risks." The SRA investigation covers the company's work between September 2015 and April 2017 for two unnamed private clients and company vehicles associated with the two men. The work includes a proposal to acquire two separate entities that pose a "greater risk of money laundering or terrorist financing" under relevant money laundering legislation as they involve companies in high-risk jurisdictions.

The regulator found that Mishcon de Reya did not conduct the required due diligence or ongoing monitoring. In addition, between July 22 and July 28, 2016, a payment of £965,000 was made to the account of a Mishcon de Reya customer, as well as three payments, the highest of which is USD 1,099,015, equivalent to £810,000, nor one of which was not related to the provision of services by the company to the company, contrary to the rules of the SRA, which prohibit the use of client accounts "as a banking structure." The firm has accepted the SRA's decision and a fine nearly double the previous maximum of £124,436 imposed by the regulator on Find My Claims in 2019 for sending six million unsolicited marketing emails to members of the public due to failed payment protections. Insurance sold (PPI). A spokesman for Mishcon de Reya disputed that the fine was the largest ever imposed by the SRA, as the fine concerned two separate investigations rather than one.

The deal will prevent an investigation looming over the company as it prepares for a listing on the London Stock Exchange. The company is expected to be valued at about £750 million, based on typical valuations in the legal sector, a price that would make it the largest registered law firm in London, with every employee becoming a shareholder. The company is known for representing the rich, famous and influential. High-profile cases include acting on behalf of Diana, Princess of Wales, during her divorce from Prince Charles and Gina Miller when she took over the government to decide whether Parliament should approve Article 50 after the Brexit vote.

Keir Starmer advised the company when he was in Parliament but ended the relationship when he became Brexit Shadow Secretary in 2016 and later turned down an offer for a second lucrative job with the company. The SRA penalty rate was based on 0.25% of turnover, in the middle of the range to 0.5%, as the SRA stated that "the violations were serious, but the risks did not crystallize into harm to customers. public interest." Based on a Mishcon de Reya turnover of £155 million, this would have been equivalent to £387,500 but reduced by the maximum allowable discount of 40% to reflect extenuating circumstances.

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