![Risk.net](https://www.risk.net/sites/default/files/styles/print_logo/public/2018-09/print-logo.png?itok=1TpHrpuP)
FSA fines get personal
The first MLRO fined for money laundering control failings by UK regulator
LONDON – The Financial Services Authority (FSA) has fined Sindicatum Holdings £49,000 and its money laundering reporting officer (MLRO), Michael Wheelhouse, £17,500 for failing to have adequate anti-money laundering systems and controls in place to verify and record clients’ identities.
This is the first time the FSA has fined a money laundering reporting officer.
The FSA found a number of failings at the firm. It failed to implement adequate procedures for verifying the identity of its clients, to verify adequately the identity of a large number of its clients, and to keep adequate records with regard to the verification of the identity of its clients. Wheelhouse failed to take reasonable steps to implement adequate procedures for controlling money laundering risk.
William Amos, head of retail enforcement at the FSA, says: “It is vital to the integrity of the UK’s financial markets that regulated firms are not used by criminals to launder money. Senior management must implement and follow procedures that meet our requirements so the risks their firms face are properly managed.
“This fine is a warning to firms and individuals about the importance of complying with our rules in this area and we will not hesitate to clamp down on failures, where necessary.”
In deciding the penalty for Sindicatum, the FSA took into account the firm’s limited financial resources and its ability to pay the fine. Had it not been for these factors, the penalty would have been much larger, says the FSA.
Sindicatum and Wheelhouse have taken steps to review and improve the firm’s systems and controls in relation to financial crime.
The FSA did not find any evidence of money laundering at the firm.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk management
Op risk data: Payday lender Skytrail sees $1.4bn disappear
Also: Cartel claims cost European bond dealers dearly, plus oil price gouging and crypto cover-ups. Data by ORX News
Bankers hope EBA op risk taxonomy will go global
Proposed update to 20-year-old risk map is welcomed, but international co-ordination urged
Marex plots interest rate clearing push
UK broker is live on LCH and plans to be a “day one” clearing member on FMX
Eurex default fund reshuffle leaves members frustrated
Clearing members say concentration margin add-ons would be fairer than buffer on all portfolios
Tired of fat-finger blunders, G-Sibs turn to robots for help
Big banks speed up shift towards control automation and AI adoption to counter costly human errors, Benchmarking survey finds
CME, FICC in talks to expand cross-margining to client accounts
New rules and account structures will be needed to allow cross-margining by non-members
On geopolitical risk, G-Sibs choose their battles
Conflicts – both existing and threatened – raise concern among banks, but many are still grappling to weave the risk into their frameworks
Margin calls jumped threefold as global markets sold off
FCMs claim no client defaults, but episode revives complaints of procyclical margining