GTBank Faces £7.7m fine in UK For Money Laundering Control Failures

The Financial Conduct Authority (FCA) has penalized Guaranty Trust Bank (GTB) UK, a unit of the lender, with a fine of £7.7 million for inadequacies in its anti-money laundering (AML) controls.

GTBank Faces £7.7m fine in UK For Money Laundering Control FailuresThe FCA announced the fine in a statement released on Tuesday, indicating that had fallen short of tracking customer transactions and business dealings to the standards expected by regulators.

The statement also revealed that the bank failed to address the deficiencies despite being alerted to them by both internal and external sources.

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This is the second time that has faced penalties for AML control failures, having been fined £525,000 in 2013 for “serious and systemic” issues.

The financial institution ceased signing up new customers beginning in early 2018, according to the FCA, the year during which consented to broader voluntary limitations on business, considering the regulator’s ongoing worries.

“GTBank should have acted quickly to put in place adequate AML controls following its fine in 2013 but it failed to do so.

“GTBank did not develop a plan that was capable of addressing its AML weaknesses, exposing it and the broader market to financial crime risks for a prolonged period,” said Mark Steward, FCA’s executive director of Enforcement and Market Oversight.

“’ Firms must protect themselves and those dealing with them from financial crime risks, especially money laundering. The FCA is determined to ensure the market for financial services is safe, clean and trusted with robust systems and controls in place to stymie financial crime.”

The document said, “GT Bank has not disputed the FCA’s findings and agreed to settle, which means it has qualified for a 30 per cent discount.”

The fine would have been in the neighbourhood of £11 million had it not been discounted.

The watchdog, which regulates the conduct of 50,000 companies in the country, expects functional AML controls to be installed by the firms it oversees to curb threats from persons and organisations using financial services firms to bypass checks aimed at blocking them from enjoying illicitly acquired assets.

Gbenga Alade, the Managing Director of GTBank UK, assured stakeholders and the general public that necessary steps have been taken to address and resolve the identified gaps.

“As a responsible financial services institution that is committed to best practices, GTBank 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 said.

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