FCA fines bank £3.25m and restricts deposits

It has also fined the bank’s former money laundering reporting officer, Steven Smith, £17,900 and prohibited him from performing the MLRO or compliance oversight functions at regulated firms. 

Despite having previously received clear warnings about 'serious and systemic weaknesses' in its AML controls, SBUK failed to maintain adequate AML systems between 20 August 2010 and 21 July 2014.

While under FCA investigation, SBUK breached Principle 11 (dealing with regulators in an open and cooperative way) by failing to notify the FCA of an allegation of significant fraud.

Mark Steward, Director of Enforcement and Market Oversight at the FCA, said:

“Fighting money laundering is an issue of extreme international importance and ensuring that AML controls are effective and viewed as important throughout the business are fundamental obligations of all regulated firms.”

“There is an abundance of guidance for firms on how to comply with AML and financial crime requirements and no excuse for failing to follow it. The FCA will not hesitate to take action against firms and senior individuals who fall short of our standards. As in this case, such action may include using our powers to restrict a firm’s continuing business.”