Gordon Scot Watson

Findings — machine-extracted (anthropic-batch:claude-opus-4-8); verify against the decision

Gordon Scot Watson, a sole practitioner and MLRO, signed an AML exemption disclosure yet carried out approximately 60 AML in-scope transactions (mainly registering deeds for non-solicitor business TB), including a £200,000 Hamilton property sale. A Law Society financial compliance inspection found he had not conducted required due diligence, had no PWRA or policies/controls in place, failed to keep records, was uninsured for the work, and could not correctly identify his clients. He also made declarations to Registers of Scotland without authority. The Tribunal found him guilty of professional misconduct for breaches of Rules B9.2(b), B9.3(a),(b), B9.4 and the 2017 Money Laundering Regulations. No dishonesty or lack of integrity (B1.2) was averred or found. Despite serious concern over his lack of insight, the Tribunal declined to strike him off, instead censuring him and restricting his practising certificate for 5 years (practise only as approved qualified assistant, and only non-AML in-scope work). He was found liable in expenses and the decision was to be publicised naming him.

Duties found breached:

• No taking unfair advantage
• Firm governance, systems and compliance
• AML and crime-prevention compliance
• Not misrepresent regulated status

Aggravating factors:

• Serious lack of insight into the consequences and seriousness of his conduct
• Involved in approximately 60 in-scope transactions
• Failed to identify who his clients were
• Undertook work beyond scope of practice for which he was not insured, increasing risk to clients
• Handled client funds without proper protection or oversight
• Misled the Keeper by making formal declarations without knowledge or authority
• One previous finding of unsatisfactory professional conduct (censure and £350 compensation)

Mitigating factors:

• Co-operation with the financial compliance investigation and prosecution, entering a Joint Minute
• Early admission of guilt (from December 2023) and expressed remorse
• Relatively inexperienced solicitor with a practice in its early stages
• Stopped the work immediately once the problem was identified
• No actual loss or prejudice to any client or third party
• Autism diagnosis affecting executive functioning
• Efforts to learn from mistakes (AML training) and set up a legal advice charity
• Character references provided