Bank of Ireland fined for money laundering breach
The Financial Services Authority (FSA) has fined the Bank of Ireland (BoI) for breaching anti money laundering regulations.
The £375,000 fine relates to “suspicious” cash transactions worth approximately £2 million that are currently being investigated by the police.
The Bank was fined specifically for not having systems in place to detect the high-risk transaction.
Philip Robinson, financial crime sector leader at the FSA, said: “Adequate systems and controls are fundamental to the UK anti money laundering regime’s effectiveness and firms must identify the money laundering risks in their business and take appropriate action to reduce these.
“These transactions were high-risk in terms of providing scope for money laundering and were in breach of BoI’s policies and procedures. Furthermore, they continued for a period of four years. BoI did not establish adequate systems and controls to monitor the issuing of bank drafts and did not check that its staff understood fully their anti money laundering responsibilities in relation to the recognition and reporting of suspicious transactions.”
Between 1998 and 2002, 40 bank drafts for cash were issued to a one of the branch’s largest customers, and the identity of the owner of the cash was disguised. The FSA notes that this was an “effective means of money laundering.”
However, the FSA do note that once the breach was discovered the BoI has devoted “significant resources” to investigating the matter and to introduce a revised training programme.
Money-laundering is one of the crimes which David Blunkett wants to place under the purvey of a new Serious and Organised Crime Agency.
