Question to the Ministry of Justice:

To ask the Secretary of State for Justice, what steps the Solicitors Regulation Authority is taking to help ensure that (a) solicitors and (b) law firms are complying with sanctions imposed by the UK on Russia.

Under the framework established by the Legal Services Act 2007, the legal profession in England and Wales operates independently of the government. Regulation of legal services is independent of the professions and government.

Lawyers are subject to significant anti-money laundering responsibilities and duties, as well as strict procedures when transacting with sanctioned individuals. Those individuals are required to obtain a license from the Office of Financial Sanctions Implementation to make payments for legal services.

The Solicitors Regulation Authority (SRA) has put out guidance reminding solicitors of their professional obligations and legal requirements if they represent sanctioned individuals. The SRA Code of Conduct requires all regulated law firms to have appropriate policies in place to ensure compliance with sanctions legislation, including undertaking regular and appropriate checks of sanctions lists. The SRA is stepping up spot checks, focused on those firms who may be exposed to the Russian market, and investigations to monitor and enforce compliance. It has been in touch with all solicitors and firms to remind them directly of their obligations.

Breaching the financial sanctions requirements can result in potential criminal prosecution or a fine. This is also the case where there is evidence of serious or repeated breaches of money laundering regulations. In the last four years, the SRA have prosecuted more than 60 such cases at the Solicitors Disciplinary Tribunal. These have resulted in a range of fines, as well as multiple solicitors having been struck off or suspended.

Legal sector regulators are also coming together rapidly to look at what can be done to further improve the enforcement of the restrictions under the current sanction and anti-money laundering regime. The SRA has also recently consulted on increasing its internal fining powers, which could increase deterrence and enable it to resolve cases more quickly.