Simpson Thacher hit with £300k fine over AML failings

Simpson Thacher’s London office has been slapped with a £300,000 fine after the Solicitors Disciplinary Tribunal (SDT) approved a settlement with the regulator over anti-money laundering (AML) control failures.

The SRA accused the firm of failing to have fully compliant policies and controls in place between 2017 and 2023 - although it did not suggest that any money laundering actually took place, rather that the failures resulted in “an increased risk of money laundering.”

On top of the fine, Simpson Thacher has also been ordered to pay up £62,000 in costs.

The timing is interesting.

Just this week, the SRA won its appeal against the SDT’s decision last year to dismiss its high-profile case against Dentons over alleged AML breaches. That case will now be reheard by a fresh tribunal panel.

The regulator has been ramping up AML penalties in recent years. Clyde & Co was hit with a record £500,000 for money laundering failings in January 2024, while top 100 firm Ashfords was ordered to pay £100,000 for similar breaches in 2023.

In a statement, Simpson Thacher said: “We are pleased that the tribunal has accepted the resolution agreed with the SRA in respect of this matter.

The London office of Simpson Thacher & Bartlett LLP acknowledges and regrets certain historic shortcomings in some of our UK AML written policies and procedures and has made significant investments to enhance our robust compliance function.”