UBS fined for anti-money laundering breaches

12 Sep 2012

The Central Bank has reprimanded and fined UBS International Life Limited €65,000.

The fine is for failing to comply with legislation aimed at protecting the financial system from the risk of exposure to money laundering and terrorist financing.

The Central Bank said it had entered into a settlement agreement with the bank in relation to various breaches of the Criminal Justice Act (2010).

The breaches relate to a failure by the institution to demonstrate that it instructed its staff on the law in relation to laundering and terrorist financing for up to six months, and in some cases, nine months, after the legislation had been introduced.

It said UBS had also failed to adopt adequate written policies and procedures in relation to the identification and reporting of suspicious transactions.

The Central Bank said the taking of the case and the sanctions imposed reflected the seriousness with which the Bank views breaches of the law to protect the financial system from money laundering and terrorist financing.

It was the bank’s first sanction for non-compliance by a regulated firm with anti-money laundering and counter terrorist financing laws which came into force in July 2012.

”Firms must adopt robust and effective policies and procedures to prevent and detect money laundering and terrorist financing including ensuring that policies, procedures and business practices are updated in timely manner on foot of changes to regulatory practices,” commented the Central Bank’s director of enforcement Peter Oakes.

He said that it is important for the integrity of the Irish regulated market and the international fight against financial crime that both European and global money laundering and terrorist financing obligations are complied with.

”Where the actions of a firm undermine the Central Bank’s achievement of local statutory and international obligations the firm should expect that enforcement action will follow, especially where the breach falls within our stated enforcement priorities and enforcement strategy, to which we attach high priority,” he added.

http://www.rte.ie/news/2012/0621/ubs-fined-for-anti-money-laundering-breaches.html