The Solicitors Regulation Authority (SRA) has decided to take action against City law firm Candey Limited and its former partner, Richard Morris, through the Solicitors Disciplinary Tribunal (SDT). The SRA’s decision relates to allegations that date back nine years and involve events from May and June 2015. We detail the case and outline how Verify 365 enables firms to complete enhanced and effective due diligence and source of funds checks, kicking off our Verify 365 insights series of articles . 

Verify 365 Insights – Significant Case & Source of Funds Checks

According to the SRA, Candey Limited failed to secure adequate source of funds information, as mandated by money laundering regulations, for anticipated settlement monies. Additionally, the firm is accused of authorising the transfer of a portion of these settlement monies in June 2015 without obtaining the necessary information, which allegedly violated compliance standards and regulations.

Richard Morris, who now serves as a director at Radius Law Limited, is similarly charged with not securing sufficient source of funds information and approving the continued transfer of settlement monies. He is also accused of using the client’s account as a banking facility. Specific details about the client or the settlement have not been disclosed by the SRA, but we understand that the case involves a multi-million-pound settlement from an international arbitration.

Candey’s Response

In response to these accusations, a spokesperson for Candey stated: “The SRA wrongfully alleges that Candey should have done more to verify the source of funds and should not have authorised onward payment. Candey’s position is that it took all necessary steps to verify the source and acted appropriately based on the detailed settlement agreement. There is no claim that the monies were proceeds of crime, and the SRA does not specify what further verification was needed when it is accepted that the funds were genuine proceeds from an arbitration settlement.”

Candey, which prides itself on being an “elite disputes law firm” specialising in high-value commercial litigation, arbitration, and complex regulatory disputes in London, New York, and Vienna, looks forward to a fair resolution. The firm emphasises the significant implications this decision could have for the litigation and arbitration community regarding the handling of settlement funds.

The allegations against both Candey and Morris remain unproven and will be examined during a hearing before the SDT. Richard Morris, who left Candey in 2018, has been approached for comment.

How Verify 365 Helps Firms Establish Source of Funds

Ensure your firm remains compliant and protected from potential legal and financial repercussions, just as discussed above, by using Verify 365’s cutting-edge FCA open banking source of funds verification with AI analytics.

Our technology has been designed to address the stringent demands of money laundering regulations by utilising advanced algorithms and real-time data verification to provide comprehensive and reliable insights into the legitimacy of funds.

Our platform offers:

– Seamless Integration: Easily integrate our SOF verifications with your existing systems for smooth and efficient operations.

– Real-Time Updates: Stay ahead with continuous monitoring and real-time updates that keep your firm informed of any changes or risks.

– User-Friendly Interface: Simplify the compliance process with an intuitive interface that requires minimal training and delivers maximum efficiency.

Digital source of funds checks are crucial in today’s regulatory environment as they provide an extra layer of security and assurance, preventing the risks associated with inadequate verification. By leveraging Verify 365, firms can enhance their compliance framework, protect their reputation, and focus on delivering top-tier legal services. Utilising Verify 365 ensures you can complete enhanced due diligence on individuals and businesses, protecting your firm from potential harm and risk. 

Visit Verify 365 to learn more about how our FCA open banking source of funds verifications and analytics can future-proof your firm.