https://www.gbc.gi/news/law-firm-fined-ps10000-over-anti-money-laundering-failures

A Gibraltar law firm has been fined £10,000 for failings in its anti-money laundering controls.

The Legal Services Regulatory Authority took enforcement action following an on-site inspection in May, which found the unnamed firm had only a “moderate” level of effectiveness in meeting its obligations. It also found the firm was at ‘medium risk’ for money laundering, terrorist financing, proliferation financing and sanction evasion.

The LSRA identified a number of shortcomings, including inadequate customer due diligence and monitoring unusual financial matter, as well as failures relating to its risk assessment and the implementation of policies and procedures.

It also found the firm did not have adequate measures in place to identify and scrutinise complex or unusually large transactions, or unusual transaction patterns with no apparent economic or lawful purpose.

However, the regulator stressed there was no finding that the firm had actually been involved in money laundering, terrorist financing, or sanctions evasion. It also found no loss to clients or benefit to the firm as a result of the breaches.

The LSRA said it did not consider it proportionate to identify the firm publicly.

It is reminding legal practitioners of their obligations under the Proceeds of Crime Act and says further guidance for the sector will be published shortly.