The UK has reprimanded 26 law firms for failing to fight money laundering effectively, the Financial Times has reported.

These firms will now face disciplinary action.

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The move was initiated after Solicitors Regulation Authority’s (SRA) review of a representative sample of 59 firms.

The review did not reveal actual money laundering evidence.

However, the watchdog flagged inadequate risk assessments, citing that four of the firms reviewed did not have any written process for the same.

A particular area of concern highlighted was some firms’ practice to evade due diligence on affluent customers.

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The practice was found to be more prevalent during screening of politically exposed persons such as business leaders or senior government officials.

Of the firms reviewed, a quarter was found to have inefficient processes to manage these clients.

The regulator has now started a broader review, which involves 400 firms.

SRA CEO Paul Philip said: “Those firms should be on notice that compliance is not optional. They need to improve swiftly.

“Where we have serious concerns that a firm could be enabling money laundering, we will take strong action.”

In the last five years, the regulator has taken over 60 money laundering cases to the Solicitors Disciplinary Tribunal with over 40 solicitors penalised thereafter.

In order to combat money laundering, the government now has power to give “unexplained wealth orders”.

These orders empower investigators to take hold of assets of those who are unable to explain the sources of their wealth.