Financial Crime World

Financial Sanctions Imposed on Local Companies for Failure to Comply with Anti-Money Laundering Regulations

In recent onsite visits conducted by the regulatory authority, several local companies were found to be in breach of anti-money laundering (AML) regulations. As a result, financial sanctions have been imposed on these businesses.

Sanctions Imposed

The following companies received financial sanctions for failing to comply with AML regulations:

KS Investment (Gibraltar) Limited

  • Financial sanction: £12,500
  • Breaches:
    • Failure to collect proof or excerpts of beneficial owner’s registration on the Gibraltar Register of ultimate beneficial owners
    • Lack of appropriate customer due diligence
    • Non-compliance with Targeted Financial Sanctions obligations
  • Temporary ban from managerial positions for 12 months imposed on one manager

Century 21

  • Fine: £1,000
  • Breaches:
    • Failure to carry out appropriate customer due diligence
    • No independent audit of AML/CFT policies and procedures

Property Promise (HDM Consultants)

  • Fine: £1,100
  • Breaches:
    • Failure to carry out appropriate customer due diligence
    • Poor record keeping
    • Non-compliance with regulations related to Politically Exposed Persons (PEPs)

J. Boyd Estate Agency Limited

  • Fine: £1,500
  • Breach:
    • Failure to carry out appropriate customer due diligence

Other Companies

In addition to the above fines, other companies were also found to be in breach of AML regulations. These included:

  • Failure to acquaint themselves with relevant regulations
  • Poor record keeping
  • Non-compliance with Targeted Financial Sanctions obligations

The regulatory authority has issued financial sanctions ranging from £350 to £3,000 for these breaches, along with action plans to rectify the deficiencies identified during the onsite visits.

Conclusion

These findings serve as a reminder of the importance of compliance with AML regulations and the potential consequences of non-compliance. It is crucial for businesses to ensure they are in compliance with regulatory requirements to avoid financial sanctions and reputational damage.