£16k fine for failing to identify PEP in property transactions
Summary
The Solicitors Regulation Authority has fined Leadenhall Law Group Limited £16,092 after it failed to properly identify a politically exposed person in a series of residential property purchase transactions. The firm also did not adequately establish source of funds or source of wealth across 14 transactions completed between March 2017 and January 2020.
Why it matters
This is relevant to residential property surveyors because it highlights ongoing AML and client-risk controls in property transactions, particularly where high-risk clients are involved. Surveyors working alongside conveyancers and agents should be alert to the compliance expectations around PEPs, source of funds and source of wealth checks.
Key points
- SRA imposed a £16,092 fine on Leadenhall Law Group Limited.
- The firm acted in 14 residential property purchase transactions for a non-domestic PEP and associated companies.
- The SRA found failures to identify the client as a PEP and to establish source of funds/source of wealth.
- The misconduct was linked to non-compliance with Regulations 28 and 35 of the MLRs 2017.
- The penalty was reduced due to cooperation and subsequent compliance.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
