Title: Ghana International Bank Faces Hefty Penalty for AML/CFT Lapses from UK Regulator
June 23, 2022
The UK’s Financial Conduct Authority (FCA) imposed a substantial penalty of £5,829,900 on Ghana International Bank Plc (GIB) on June 23, 2022. The penalty was issued due to GIB’s failure to maintain adequate anti-money laundering and counter-terrorist financing (AML/CFT) controls in relation to its correspondent banking activities.
FCA’s Findings and Penalty Against Ghana International Bank
The investigation by the FCA uncovered several significant lapses in GIB’s AML/CFT systems. These deficiencies led to suspicious transaction activities going undetected, raising concerns for the London financial regulator. Some of the findings are:
- Inadequate risk assessment and customer due diligence processes
- Insufficient monitoring of corporate customers’ transactions
- Limited understanding and application of AML/CFT regulations
- Lack of effective, ongoing training for staff
Impact of the Penalty and FCA’s Enforcement Action
GIB has until August 2022 to pay the fine. The bank is currently assessing the potential impact on its financial statements. This penalty, combined with previous penalties totaling over £100m imposed by the FCA on several global financial institutions for similar lapses, underscores the importance of robust AML/CFT systems.
Importance of AML/CFT Systems, Especially in Correspondent Banking
The FCA’s robust enforcement approach is a reminder to financial institutions about the necessity of having robust AML/CFT frameworks, especially in the context of correspondent banking relationships. By implementing strong AML/CFT measures and complying with international regulations, institutions can safeguard their reputation, protect their customers, and meet their regulatory obligations.
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Click here to read the FCA’s statement on the penalty imposed on Ghana International Bank Plc.