British Solicitor Fined £32,500 over AML compliance failure and for facilitating a Politically Exposed Person (PEP)

A UK solicitor has been fined and banned from senior legal roles for five years after the Solicitor Disciplinary Tribunal found that he facilitated a politically exposed person (PEP) without verifying the source of wealth. Moreover, he was also convicted of using client funds for personal expenses.

Rory Peter Heddle Fordyce served as manager, compliance officer for legal practice, and director of Hampshire firm Taylor Fordyce Limited. The Solicitors Disciplinary Tribunal (SDT)  found that Fordyce allowed £1.1million from a Politically Exposed Person (PEP) and £1.9 million from PEP’s sister to pass through the firm’s client account without the required verification of the source of their wealth.

Between 2014 and 2022, he also used clients’ accounts for personal spending totalling £638,000,  covering expenses such as loan payments, taxes, car repairs, and other such personal spending.

He facilitated Anar Mahmudov, son of  Azerbaijan’s former minister of national security, Eldar Mahmudov, a politically exposed person, with the transaction of funds without taking adequate regulatory measures to confirm the source of wealth. Under the UK’s Anti Money Laundering Regulations, clients deemed as Politically Exposed Persons should be scrutinised under tight due diligence, which was not followed through by Rory Fordyce.

Fordyce admitted that he did not take the efficient measures that he was required to take. In his defence, he argued that his actions were not motivated by any personal gain. Instead, he chose speed and convenience over following compliance rules. He put his duties aside to avoid delaying a deal for an important client.

The SDT judgement said, 

“Mr Fordyce emphasised that his failings were unintentional and that he had used this as a learning point by undertaking intensive anti-money laundering training.”

“He had prioritised the transaction over his regulatory obligations.”

 His actions were termed as “Rudimentary, Piecemeal, and naive.”

So, the Solicitor Disciplinary Tribunal fined Fordyce £32,500 and put him under restrictions to set a precedent so that such failures must not be overlooked and compliance must be prioritised over client acquisition. These restrictions barred him from practicing as a sole practitioner, manager, or owner of any recognized legal body for five years. He was also ordered to pay £50,000 in legal fees.