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FSA imposes AML fines
The Financial Services Authority (FSA) has fined financial advisory and asset management firm, Sindicatum Holdings Limited and it’s Money Laundering Reporting Officer (MLRO) in the first case of its kind.
Sindicatum Holdings were fined £49,000 and MLRO Michael Wheelhouse was also fined £17,500. The fines were imposed for inadequate anti money laundering systems and for failing to put into place controls for verifying and recording client’s identities. Although the FSA has fined companies before, this is the first time a Money Laundering Reporting Officer has been held accountable.
The FSA found that although there was no evidence of money laundering, the company failed to:
- implement adequate procedures for verifying the identity of its clients;
- verify adequately the identity of a significant number of its clients;
- keep adequate records with regard to the verification of the identity of its clients; and
- Mr Wheelhouse failed to take reasonable steps to implement adequate procedures for controlling money laundering risk.
William Amos, head of retail enforcement at the FSA, said:
"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."
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4 November 2008
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