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UK Bank fined $1.5 m

Tuesday 12 June 2018


Penalties 
 
The UK’s Canara Bank is being made to pay £896,100 (approximately AUD$1.5 M) and has been banned from receiving deposits for 147 days in response to compliance failures in their anti-money-laundering systems.

The bank was granted a 30% discount on the fine due to their cooperation with the Financial Conduct Authority (FCA).

According to the UK regulator, between 26 November 2012 and 29 January 2016, Canara Bank not only failed to have in place adequate AML processes but also failed in the eyes of the regulator to take adequate steps to remedy the matter.

“Financial crime and money-laundering failures are areas of focussed priority for us. Canara was warned its money-laundering controls were inadequate and so its failure to remediate them properly is at the more serious end of the range of sanctions,” said Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA.

The regulator’s official statement said these failures affected:

  • Senior management
  • Governance /oversight
  • Three lines of defence
  • Money-laundering reporting function
  • AML systems and controls