Turkish Bank (UK) Ltd fined for money laundering failings

11 Sep 2012

The FSA has published (http://www.fsa.gov.uk/library/communication/pr/2012/081.shtml?intEmailHistoryId=778390&intEmailListId=133&intEmailId=60099&intExternalSystemId=1) a Decision Notice (http://www.fsa.gov.uk/static/pubs/final/turkish-bank.pdf) fining Turkish Bank (UK) Ltd (TBUK) £294,000 for breaching the Money Laundering Regulations 2007. The breaches related to TBUK’s corresponding banking arrangements and were considered to be widespread by the FSA. This is the first time that the FSA has taken action against a firm in relation to money laundering weaknesses in its correspondent banking arrangements. Under the Money Laundering Regulations 2007, providing correspondent banking services to banks based in non-EEA states is considered to create a high risk of money laundering that requires enhanced due diligence and ongoing monitoring of the relationship. The FSA found that TBUK had failed to establish and maintain appropriate and risk-sensitive anti-money laundering (AML) policies and procedures for its correspondent banking relationships, had failed to monitor its relationships with correspondent banks and had failed to maintain adequate records. TBUK’s failings were particularly serious as the FSA had previously warned it of deficiencies in its AML controls over correspondent banking. TBUK’s fine comes as a result of the FSA’s July 2010 thematic review of how banks in the UK were managing money laundering risks.