A Birmingham law firm, Tyndallwoods Solicitors, has been fined £27,813 by the Solicitors Regulation Authority (SRA) for failing to comply with anti-money laundering (AML) regulations for seven years. This serves as a sobering reminder to professionals in the legal and property sectors of the importance of robust compliance procedures in safeguarding against financial crime.

Birmingham Law Firm Fined – The Compliance Gap

The SRA’s investigation revealed that Tyndallwoods had failed to implement the necessary AML measures from 2017 until September last year. Specifically, the firm lacked the required risk assessments, as well as policies, controls, and procedural documents mandated under the Money Laundering Regulations 2017 (MLRs).

During an inspection, the regulator uncovered several shortcomings. Out of eight client files reviewed, two showed insufficient ongoing monitoring of transactions, including scrutiny of customer funds. In three files, the firm failed to carry out due diligence altogether or performed inadequate checks.

Such oversights are not just technical breaches—they pose real risks. The SRA highlighted that failing to have proper documentation in place exposed Tyndallwoods to the potential misuse of its services for money laundering, particularly in conveyancing transactions, which make up approximately one-third of the firm’s turnover.

Potential for Harm

While no direct harm to clients or third parties was identified, the SRA pointed out the risks inherent in such regulatory failings. Conveyancing is considered a high-risk area due to its susceptibility to abuse by criminal enterprises. Without robust AML systems, firms can unwittingly facilitate dubious transactions, increasing the risk of financial crime and eroding trust in the legal profession.

The SRA commented: “The firm’s failure to ensure it had proper documentation in place for at least seven years since the MLRs 2017 came into force put it at greater risk of being used to launder money, particularly when acting in conveyancing transactions. This left the firm at risk of being used to launder money and, in turn, increased the risk of harm.”

Mitigating Circumstances

Despite the significant failings, the SRA acknowledged Tyndallwoods’ efforts to rectify the situation. The firm was commended for acting promptly to implement compliant processes following the inspection and for cooperating fully with investigators. This cooperation, coupled with the absence of consumer harm and the low risk of recurrence, played a role in reducing the penalty.

Originally assessed at nearly £40,000—representing 2.4% of the firm’s annual domestic turnover—the fine was reduced to £27,813 after considering mitigating factors. The firm also agreed to pay £600 in costs.

The SRA noted that its ability to levy a fine exceeding £25,000 was linked to Tyndallwoods’ status as an alternative business structure (ABS), which subjects such entities to different regulatory frameworks compared to traditional partnerships.

Lessons for the Profession

The case of Tyndallwoods serves as a cautionary tale for solicitors, conveyancers, and other professionals. It underscores the necessity of maintaining up-to-date AML policies and procedures and highlights the potential consequences of non-compliance.

For firms involved in high-risk areas like conveyancing, the stakes are particularly high. Without adequate checks and ongoing monitoring, firms can inadvertently become enablers of criminal activity. Moreover, the financial and reputational fallout from regulatory breaches can be severe.

Measures to Ensure Compliance

There are effective measures law firms must take to ensure they are practising compliantly, whoever their governing body is.

– Regular Risk Assessments: Firms must evaluate and document their exposure to money laundering risks, especially in high-risk areas like property transactions.

– Robust Policies and Procedures: Clear, well-documented procedures should be in place to address due diligence, ongoing monitoring, and reporting requirements.

– Training and Awareness: Staff should be regularly trained on AML obligations to ensure they understand their roles in identifying and mitigating risks.

– Proactive Monitoring: Ongoing scrutiny of transactions and customer funds should be a priority, with regular reviews to adapt to emerging risks.

– Audits and Reviews: Conduct periodic internal audits to identify and address potential gaps in compliance processes.

A Wake-Up Call

This case is a stark reminder that even longstanding firms are not immune to regulatory scrutiny. In a profession built on trust and integrity, compliance is non-negotiable. As the SRA demonstrated in this instance, falling short of regulatory expectations can lead to significant penalties, not just financial but also reputational.

The SRA has already handed out fines in 2025, including a £27,500 fine to a solicitor for AML failings, demonstrating that they’re determined to ensure firms are abiding by the regulations in place. Their tough stance is a clear indicator that failing to comply will have consequences.

For solicitors, conveyancers, and estate agents, Tyndallwoods’ experience is a clear call to action. Now is the time to review your own AML procedures and ensure they meet the rigorous standards expected by regulators.