- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2022-10-14T20:21:00
London-based Gatehouse Bank was fined 1.58 million pounds (U.S. $1.77 million) by the U.K. Financial Conduct Authority (FCA) for failing to address “significant weakness” in anti-money laundering (AML) checks the bank conducted on customers who posed a higher risk of committing financial crime.
From 2014-17, Gatehouse failed to conduct proper due diligence on customers located in countries known to have a higher risk of money laundering and terrorist financing, as well as on customers classified as politically exposed persons (PEPs), the FCA said Friday in a press release.
The bank violated provisions of the U.K.’s Money Laundering Regulations 2007 by not conducting adequate due diligence to verify the identity of its customers or scrutinize the source of their funds or wealth; not conducting enhanced due diligence on customers who lived in high-risk countries or were PEPs; not adequately monitoring customers to ensure due diligence information was updated; and having inadequate internal controls to rectify the situation and inadequate compliance staff to do the work, the FCA said.
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