Industry Insights
UK AML fines a sign of what's to come
A UK lawyer has been fined and banned after serious Anti-Money Laundering compliance failures.
The Solicitors Disciplinary Tribunal ruled on July 25 Rory Peter Heddle Fordyce failed anti-money laundering checks and misused his client account while at Taylor Fordyce Limited.
He was fined £32,500 (about $67,000 AUD) and banned from senior legal roles for five years.
Fordyce failed to carry out mandatory AML checks on a politically exposed person (PEP) before accepting substantial funds.
SDT ruled he failed to adequately verify the £1.1m he received in 2014 from his client, Anar Mahmudov, son of the Azerbaijani former minister of national security.
He also failed to verify £1.9m in 2015 from the client’s sister.
Fordyce also misused the firm’s client account as a banking facility, processing about £639,000 in personal payments.
This was deemed a clear breach of professional standards that undermined trust in the legal profession.
Fordyce was further ordered to pay costs in the sum of £50,000 and has been banned from holding senior positions in law firms for five years.
Why Australia Should Pay Attention
From 1 July 2026, Australia’s Tranche 2 AML/CTF reforms will come into effect, extending compliance obligations beyond financial institutions to include:
Lawyers
Accountants
Real estate agents
And other designated non-financial businesses and professions (DNFBPs)
These changes will require affected professionals to conduct customer due diligence (CDD), monitor transactions, and report suspicious activities — standards that mirror the UK’s AML regime.
By acting now and getting educated on AML compliance, tranche 2 businesses can avoid the scramble that inevitably comes when new regulations take effect.