Gibraltar Law Firm Fined £50,000 for Anti-Money Laundering Failures
Wilkinson Law Limited, operating as Strait Law, has been fined £50,000 by the Legal Services Regulatory Authority (LSRA) of Gibraltar for significant failures in anti-money laundering (AML) compliance. Additionally, the firm's director, Richard Andrew Wilkinson, has been suspended from practice for 12 months and prohibited from acting as the firm's director, senior compliance person, or money laundering reporting officer for 18 months.
Details of the Regulatory Action
The LSRA's investigation revealed substantial non-compliance with AML regulations by Wilkinson Law Limited. These failures pertained to both authorized legal services provided within Gibraltar and unauthorized legal services offered in the UK from Gibraltar. The LSRA emphasized that these findings do not imply that the firm engaged in money laundering, terrorist financing, or sanctions evasion.
In response to these violations, the LSRA has imposed several enforcement actions:
- Prohibition from undertaking legal services or reserved legal activities outside Gibraltar.
- Restriction on using client accounts for matters unrelated to the provision of legal services or reserved legal activities in Gibraltar.
- Suspension from undertaking new relevant financial business under the Proceeds of Crime Act (POCA) until the firm demonstrates compliance with a remediation plan and implements appropriate policies, controls, and procedures to meet regulatory obligations.
Statements from Involved Parties
Richard Andrew Wilkinson acknowledged the LSRA's decision and expressed respect for the authority's role as the regulator of the legal profession in Gibraltar. The LSRA also reminded legal practitioners of their obligations under POCA and urged firms to familiarize themselves with the risks identified in Gibraltar's 2025 National Risk Assessment and typology reports issued by the Gibraltar Financial Intelligence Unit.
Implications for the Legal Profession
This case underscores the critical importance of stringent AML compliance within the legal sector. The LSRA plans to publish extended guidance on AML, counter-terrorist financing, counter-proliferation financing, and sanctions obligations for the legal profession shortly. Legal practitioners are advised to adhere strictly to these guidelines to maintain the integrity of Gibraltar's financial and legal systems.
For more detailed information, refer to the original article: £50,000 Fine and Law Firm Director Suspended Over Anti-Money Laundering Failures