The private bank that serves Britain's Queen Elizabeth II and other wealthy individuals was fined 8.75 million pounds sterling by the United Kingdom's bank regulator for anti-money laundering deficiencies. London-based Coutts & Company, which is owned by the Royal Bank of Scotland (RBS), failed "to take reasonable care to establish and maintain effective anti-money laundering (AML) systems and controls relating to high-risk customers," including politically exposed persons (PEPs), according to a Financial Services Authority (FSA) statement released Monday. The enforcement action follows an October 2010 visit to Coutts by FSA officials who reviewed the bank's AML practices and concluded that...
U.K. financial regulators will likely only get tougher on British banks that violate anti-money laundering laws in the coming year, possibly going so far as to prosecute individuals, according to Jonathan Fisher QC, a London-based barrister.
The United Kingdom's banking regulator Tuesday penalized a Zurich-based financial institution and its former anti-money laundering officer a combined 540,000 pounds for broad failures in risk-ranking and enhanced due diligence procedures.
Not only can banks in the UK expect a number of anti-money laundering enforcement actions from the Financial Securities Authority, despite the fact the agency shuts down next year, investment banks and individuals in financial services can also expect a host of non-AML enforcement actions.
A U.K. fine against a London-based private banking subsidiary of the Royal Bank of Scotland underscores the risks financial institutions take when they allow their account managers to vet valued clients, say compliance officials.
A cease-and-desist order disclosed last month against Scotland's largest bank points to compliance troubles that are more widespread than those outlined in a 2010 settlement that cost the institution $500 million, say industry insiders.