Ruling in Dentons UK and Middle East v Solicitors Regulation Authority [2026] EWCA Civ 508 this week, Lords Justice Bean, Jeremy Baker and Zacaroli upheld the High Court’s decision to quash the SDT’s dismissal of allegations against the firm. They held the SDT’s findings of fact should be preserved and the ‘new SDT’ should consider whether the breach of Solicitors Regulation Authority (SRA) principle 7 occurred and, if so, what sanction should apply.
The court rejected Dentons’ argument that, even if the breach occurred, no sanction would apply. It allowed Dentons’ appeal against rehearing allegations of breaches of two other principles.
The dispute dates back to 2013 when Dentons acquired the London office of Salans and inherited a Salans client but subsequently identified him as a politically exposed person due to his role as chair of a national bank and high risk for money laundering. The firm, relying on internet searches and the knowledge of former Salans chair François Chateau, issued an anti-money laundering and risk clearance certificate, stating the client’s source of wealth was from his employment.
The firm later received information from a private intelligence agency that the client was high risk. Dentons’ general counsel advised against retaining the client. However, Chateau disagreed and the firm again issued clearance and acted for the client in 38 matters. In 2016, the client was sentenced to 15 years’ imprisonment for crimes including embezzlement.
The SRA brought disciplinary proceedings, alleging Dentons failed to take adequate measures to establish the source of the client’s wealth, in breach of money laundering regulations and the SRA code of conduct. The firm denies the allegations.
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