The Financial Conduct Authority penalized Santander £107.7 million ($132 million) on Friday for “serious and persistent” holes in the Spanish bank’s anti-money laundering control system for over 560,000 corporate clients.
The FCA stated that between December 31, 2012 and October 18, 2017, Santander’s UK arm was unable to to manage and supervise its anti-money laundering systems adequately.
According to the FCA, Santander had ineffective systems for adequately verifying the information provided by customers about the business they intended to conduct.
“In one case, a new customer opened an account as a small translations business with expected monthly deposits of 5,000 pounds. Within six months it was receiving millions in deposits, and swiftly transferring the money to separate accounts,” Mark Steward, FCA executive director for enforcement, said in a statement.
Santander UK said that it acknowledged the FCA’s civil regulatory findings regarding anti-money laundering controls in its commercial banking division.
The FCA investigation is now complete, and the UK will take no further action. The bank stated that it would not cooperate with any watchdog or other authority in this matter.
(Adapted from Investing.com)