Fsa fines habib bank £525,000 and money laundering reporting officer £17,500 _ financial reporter

The FSA has fined Habib Bank AG Zurich £525,000 and its former Money Laundering Reporting Officer Syed Itrat Hussain £17,500 for failure to take reasonable care to establish and ma

Habib is a privately owned Swiss bank with twelve branches in the UK and approximately 15,500 customers. Money laundering nigeria Approximately 45% of its customers were based outside the UK and about half of its deposits came from jurisdictions which, according to independent international organisations, had less stringent AML requirements or were perceived to have higher levels of corruption than the UK.

The FSA’s investigation identified that during the period 15 December 2007 to 15 November 2010, Habib failed to establish and maintain adequate controls for assessing the level of money laundering risk posed by its customers. Money laundering defined In particular, Habib maintained a high risk country list which excluded certain high risk countries on the basis that it had group offices in them.

Money laundering for dummies However, Habib’s local knowledge of these countries did not negate the higher risk of money laundering they presented.

As MLRO, Hussain was responsible for oversight of Habib’s AML systems and controls, but failed to ensure that these systems and controls were adequate. Money laundering meaning in hindi The FSA imposed a financial penalty on Hussain for these failings. Money laundering statute He has now retired from the financial services industry.

“Habib’s failings were unacceptable. Why is money laundering illegal Habib’s belief that local knowledge of a country through a group office mitigated the higher money laundering risk posed by that country was entirely misconceived.

“Firms must take a dynamic approach to assessing money laundering risk so they can adapt to the ever-evolving risks of financial crime. What is anti money laundering compliance It is a basic requirement that firms know their customers and understand the risks they pose. Us money laundering laws The requirement for enhanced due diligence recognises that some customers present a greater risk of money laundering than others and that firms therefore need to do more to identify, manage and control that risk. Money laundering convictions Habib fell short in this regard.

“It is critical that Money Laundering Reporting Officers properly evaluate, on an ongoing basis, the adequacy and effectiveness of the AML systems and controls which they are responsible for. Primary money laundering offences MLROs have a key role to play in ensuring that firms take appropriate action to minimise the financial crime risks they face. Money laundering ways Where individuals fail to meet their regulatory responsibilities we will not hesitate to take action.”

Habib and Hussain agreed to settle at an early stage and therefore qualified for a 30% discount. Money laundering crime Were it not for this discount, the FSA would have imposed a financial penalty of £750,000 on Habib and £25,000 on Hussain.