Eye Watering FCA Fines for MLR Breaches
The Financial Conduct Authority (FCA) handed out over £13million in fines in June 2022 in relation to breaches of the Money Laundering Regulations (MLR). For 
firms with obligations under the MLR who are also regulated by the FCA, the regulator is a Supervisory Authority with the power to investigate and sanction criminal and civil breaches of the Regulations.
The enormous fines last month were handed out to Ghana International Bank Plc and JLT Specialty Limited. As both companies agreed to resolve the matter without dispute, they qualified for a 30% (stage 1) discount under the executive settlement procedures. This saw them fined £5,829,900 and £7,881,700 respectively.
Staggering Money Laundering Fines
After their investigation, the FCA concluded by published their findings on both firms. Both had failed to establish and maintain effective and adequate controls and policies for monitoring and preventing financial crime. These 2 organisations joined several other entities who in the same year, have amassed a staggering £226,274,800 in FCA fines relating to MLR breaches.
Shockingly, this figure does not include the eye watering £264,772,619 fine levied by the courts upon National Westminster Bank Plc. This was after the FCA successfully prosecuted the bank for 3 offences of failing to comply with the MLR.
Money Laundering Prevention
It is essential that your controls and policies for preventing money laundering are effective and fit for purpose. If you have MLR obligations, you are legally required to document your AML policies and controls. Furthermore, your AML measures and procedures must also comply with your AML supervisor rules.
Read our article “What AML Documents Do I Need?” to find out how to comply with the Money Laundering Regulations. Additionally, the guidance page advises which rules apply to you and which AML documents you must have.
