The UK regulator has fined the Queens bank Coutts & Co, part of the government back Royal Bank of Scotland £8.75M. This is due to failing to take reasonable care to establish and maintain effective ant-money laundering systems and controls, specifically relating to high risk customers and Politically Exposed Persons.
Tracey McDermott, acting director of enforcement and financial crime, said:
Coutts’ failings were significant, widespread and unacceptable. Its conduct fell well below the standards we expect and the size of the financial penalty demonstrates how seriously we view its failures. Coutts was expanding its customer base which increased the number of high risk customer relationships. The regulatory environment in relation to financial crime had also changed. It is therefore particularly disappointing that Coutts failed to take appropriate steps to manage its AML risks. This penalty should serve as a warning to other firms that, not only should they ensure they constantly review and adapt their controls to changing financial crime risks within their businesses, but that they must also make changes to reflect changing regulatory or other legal standards.
Taken from the FSA Press Release.
In recent years the FSA has made high profile fines and convictions for companies and individuals. The FSA ensure that regulated companies operate under strict rules and regulations to ensure that clients around the globe have peace of mind.
Abshire-Smith is FSA regulated to hold and control client funds and fully segregates all client funds from company funds. The company adheres to all FSA regulations to ensure a secure and transparent environment for our clients.