Some semblance of the line “Proof of negligence in the air, so to speak, will not do” is lodged in many a lawyer’s head. Good ol’ Palsgraf.
Unfortunately, reality doesn’t always line up with infamous tort decisions from 1928; proof of negligence can be more than enough when your firm hasn’t implemented safeguards against money laundering. Simpson Thacher & Bartlett found that out the hard way. Reuters has coverage:
U.S. law firm Simpson Thacher & Bartlett has been referred to a tribunal over allegations it failed to have proper anti-money laundering policies in place at its London office, a legal regulator said on Monday.
The firm has released a statement in response:
“At no point did any money laundering occur nor was there any harm to clients or third parties in connection with the alleged shortcomings,” the spokesperson said. The firm said it cooperated with the SRA probe.
Now, that is a great firm response! For non-lawyers, at least. Answering “You didn’t have protection policies in place” with “Nothing bad happened!” is a red herring to distract from the issue at hand: negligence in the air.
As it stands, it is unsure if Simpson Thacher will be hit with a fine or a slap on the wrist. Either way, it would make sense for them to set up some anti-laundering protocols in the meantime.
Law Firm Simpson Thacher Must Face UK Tribunal Over Money Laundering Controls [Reuters]
Chris Williams became a social media manager and assistant editor for Above the Law in June 2021. Prior to joining the staff, he moonlighted as a minor Memelord™ in the Facebook group Law School Memes for Edgy T14s. He endured Missouri long enough to graduate from Washington University in St. Louis School of Law. He is a former boatbuilder who cannot swim, a published author on critical race theory, philosophy, and humor, and has a love for cycling that occasionally annoys his peers. You can reach him by email at [email protected] and by tweet at @WritesForRent.
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