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. On Monday, the U.K. Financial Services Authority fined RBS-subsidiary Coutts & Co. 8.75 million pounds sterling for anti-money laundering (AML) deficiencies related to its screening of accounts held by politically exposed persons (PEPs) and other high-risk clients, the first of five pending AML-related enforcement actions expected from the agency. The private banking subsidiary failed to properly vet 73 of its 103 high-risk clients between December 2007...
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.
A report by the United Kingdom's chief financial regulator on the anti-bribery compliance efforts of investment banks likely signals coming enforcement actions, and greater scrutiny of depository institutions, say former officials.
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.
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.
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.