FCA FINES FOR AML FAILINGS: IMPORTANT GUIDANCE FOR CEO AND BOARDS

On 11th January, Stephenson Harwood published an article in the light of the FCA Decision Notice in respect of Mohammed Ataur Rahman Prodhan, imposing a fine of £76,400 on the former CEO of Sonali Bank (UK) Ltd for failings in relation to AML systems and controls, and the case of John Pottage v FSA – where obligations of CEO and other senior managers as regards regulatory compliance (and the extent to which senior managers can be held liable for regulatory or compliance failings) was explored.  These emphasised that

  • AML/financial crime is a senior management responsibility;
  • delegation of responsibilities must be appropriate, monitored and challenged;
  • whilst not having to be an expert, senior management must understand the risks and key requirements pertaining to AML and financial crime;
  • FCA supervisory visits must be taken seriously and prepared for appropriately, and where feedback is provided this must be considered carefully, challenged where it is unfair or inaccurate and otherwise given effect as a matter of priority.

https://www.shlegal.com/insights/fca-fines-for-aml-failings-important-guidance-for-ceos-and-boards

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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