Stephen McGuire

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

Stephen McGuire, Designated Cashroom Manager and MLRO at Hennessey Bowie & Co, was found guilty of professional misconduct in cumulo for numerous breaches of the Law Society of Scotland Practice Rules 2011 (B6) and the Money Laundering Regulations 2007 across inspections in 2013, 2015 and 2016. Failings included incorrect client identification on ledgers, payments to non-clients without ID/due diligence/written authority, failure to carry out and monitor risk assessments, failure to keep records, failure to train staff, and failing to supervise his partner AB (later struck off). Dishonesty/integrity (Rule B1.2) was expressly not relied upon. The Tribunal placed the misconduct at the lower to middle end of the scale, imposed a censure and £1,000 fine, and awarded expenses, with publicity naming the Respondent and his former partner.

Duties found breached:

• Not mislead third parties or opponents
• No conflict between current clients
• Handle inadvertently received material
• No improper use of client money
• AML and crime-prevention compliance

Aggravating factors:

• Ongoing course of conduct over a significant period (2013-2016)
• Repeated failures identified in 2013 not rectified by later inspections
• Conduct likely to damage the legal profession
• Knowingly permitted partner (AB) to continue practising in contravention of obligations
• Payments to non-clients created risk under the Proceeds of Crime Act

Mitigating factors:

• Respondent's health problems
• Cooperation with the Fiscal
• Entering into a Joint Minute
• Obvious remorse
• No previous disciplinary findings
• Low risk of repetition - former partner struck off and new solicitor assisting with compliance
• Formal instruction/undertaking to wind up the firm by Easter 2022
• Positive references and did not abdicate responsibility, explained matters to inspectors