(unnamed respondent)
Findings — machine-extracted (anthropic-batch:claude-opus-4-8); verify against the decision
Scott-Moncrieff and Associates Limited, a licensed ABS body, appealed to the Solicitors Disciplinary Tribunal against an SRA Adjudicator's findings (upheld by an SRA Adjudication Panel) of AML failures (Allegation 1) and improper use of its client account as a banking facility in one matter (Allegation 2, breach of Rule 3.3 of the SRA Accounts Rules 2019), and against the £68,000 financial penalty. The Firm accepted Allegation 1 but contested Allegation 2 and the proportionality of the penalty, arguing its atypical ABS structure (70% profit to consultants) and low proportion of in-scope work (around 6.9%) constituted exceptional circumstances justifying a lower fine. The Tribunal found the Adjudicator had correctly applied the guidance, properly exercised her discretion, did not rely on irrelevant considerations, and was entitled to maintain the penalty despite Allegation 3 not being proved. No dishonesty was alleged or found. The appeal was dismissed in its entirety and the Firm ordered to pay costs of £12,211.
Duties found breached:
Aggravating factors:
- Long-standing and serious nature of misconduct continued over a period of years
- Failure to heed SRA guidance and warning notices, including the AML Regulatory Manager's letter of 23 August 2022
- Significant compliance steps taken only after SRA involvement
- Lack of insight and absence of remorse
- Significant sums (over $23 million) processed through the client account without question
- Unusual business model carrying particular character of risk requiring greater vigilance
Mitigating factors:
- Conduct confined to one client matter, limiting impact of the banking facilities breach (harm assessed as medium)
- Firm became largely compliant with FWRA before the matter reached the Adjudicator