You are here: Home - Saving-Banking - News -

FCA investigating three more banks over money laundering

0
Written by:
25/07/2013
Three more banks are being investigated by the Financial Conduct Authority (FCA) over money laundering, it has revealed.

The regulator said it had recently fined a number of firms – in April, EFG Private Bank was fined £4.2m – and one person for failing to manage money laundering risk adequately.

The FCA said: “We continue to see serious weaknesses in firms’ management of their money laundering risks, including in their dealings with high-risk customers and politically exposed persons.”

The watchdog said it was working on ‘preemptive problem solving’ on money-laundering.

“We concentrate on identifying current and emerging financial crime risks, and on ensuring that an awareness of their implications and how to mitigate them is embedded in firms.

“This means the FCA will intervene early – for example by restricting a firm’s business until weaknesses in AML controls are corrected. In the past year, we have intervened in this way with four banks. This does not preclude us from taking formal enforcement action later,” it warned.

The FCA made the comments alongside the launch of its first annual report on anti-money-laundering.

It said emerging risks to FCA-regulated firms included the use of electronic money (e-money) issued in countries with ‘limited regulatory oversight’.

Addition risk is posed by the potential misuse of communications networks – particularly where firms and staff and end-consumers unaware of the risk and issues, the report said.

Other issues that may affect regulated firms include:

  • The risk that the ‘money service business’ (MSB) sector may be used to launder money or finance terrorism
  • Money laundering through trade in digital currencies 
  • Alternative banking platforms (also known as a payment platform or virtual banks) based in jurisdictions with limited regulatory oversight

FCA director of enforcement and financial crime Tracey McDermott said: “Anti-money laundering rules are in place to protect all of us from the actions of criminals. Firms must take their AML responsibilities seriously, and ensure they manage their money laundering risks adequately.

“We will do all we can to make sure they do.”

Tagged:

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week