Guaranty Trust Bank UK Limited (GTBank UK), has agreed to pay a penalty sum of £7.67 million in settlement with the United Kingdom-based financial watchdog, Financial Conduct Authority (FCA).
The settlement is in acceptance of findings in relation to historical Anti-Money Laundering (AML) controls in its operations in the period October 2014 to July 2019, GTBank said in a statement on Tuesday.
The Bank also said it has cooperated fully with the FCA investigation to reach the settlement, “which has been calculated by reference to a proportion of the revenues of GTBank UK over the relevant period and includes a 30% discount for early settlement.”
The fine was originally valued at £11 million for the bank’s failure to “undertake adequate customer risk assessments, often not assessing or documenting the money laundering risks posed by its customers.”
GTBank also informed that the FCA’s investigation focused on its AML controls, adding that steps had been taken to remediate these to ensure they operated in line with the relevant requirements.
“The findings are final, and no further action is anticipated in respect of this matter. The FCA acknowledged in its findings that GTBank UK has spent considerable time and resources in order to bring its AML standards up to the required level,” it said.
Commenting on the issue, the Managing Director, GTBank UK, Gbenga Alade, was quoted as saying: “As a responsible financial services institution that is committed to best practices, GTBank UK takes its AML obligations extremely seriously. We note with sincere regret the FCA’s findings regarding AML control gaps in our operations in the past and we are very sorry for this.”
He continued: “We would like to assure all our stakeholders and the general public that necessary steps have been taken to address and resolve the identified gaps. Whilst there was no direct customer impairment arising from the period under review [and the FCA’s findings do not include any instances of suspected money laundering], we have since reinforced our AML control framework and implemented changes in our AML processes in line with best practice with a view to ensuring that the highest standards are maintained in our operations.”
We note with sincere regret the FCA’s findings regarding AML control gaps in our operations in the past and we are very sorry for this.
FCA sanction
The FCA had slammed GTBank UK with £7.6 million in fines on allegations that the bank’s anti-money-laundering systems and controls were not appropriately monitored.
As a result, the FCA said GTBank UK was subject to disciplinary action for serious flaws in its anti-money laundering (AML) systems and controls between October 2014 and July 2019.
The FCA had earlier fined GTBank the sum of £525,000 in August 2013, for serious and systemic failings related to anti-money laundering controls.
The FCA had in a statement posted on its website, said: “During the relevant period, GT Bank failed to undertake adequate customer risk assessments, often not assessing or documenting the money laundering risks posed by its customers.”
It noted that the weaknesses were repeatedly highlighted to GTBank by internal and external sources, including the FCA, but GTBank failed to take appropriate action to fix them.
It added that GTBank did not dispute its findings and agreed to settle, thereby qualifying for a 30% discount on the fine, which would otherwise have amounted to £11 million.
Despite the penalty, the Guaranty Trust Banking Group, including GTBank UK, assured that it is fully committed to the fight against all forms of financial crime and to continuing to meet all applicable financial crime regulations and legislation globally.
“Our AML policies and controls, together with our overall risk management strategy, are regularly reviewed and revised to ensure that they remain relevant and current in line with the evolving regulatory requirements,” it said.
