SANTANDER UK Is Fined £107 Million By The FCA For Money Laundering

According to the FCA, inadequate AML procedures impacted the accounting supervision of over 560,000 corporate clients.

During its examination, the regulator discovered that between December 31, 2012, and October 18, 2017, the bank lacked adequate systems to fully check the data submitted by customers about the business they intended to undertake.

Furthermore, the Spanish bank's UK branch failed to keep track of the amount that consumers indicated they would deposit and the amount that was really placed.

“In one instance, a new client created an account as a small translations firm, with monthly installments of £5,000 anticipated.” “Within six months, it was collecting millions of dollars in deposits and quickly moving the funds to various accounts,” the regulator said.

The FCA discovered that Santander UK unlawfully maintained many other business accounts, as well as instances in which the bank failed to respond with red flags linked with suspicious conduct.

These errors resulted in over £298 million going through the bank, which did not contest the FCA's conclusions and agreed to settle the investigation.

“Santander's poor management of its anti-money laundering systems and their insufficient efforts to fix the deficiencies posed a lengthy and serious risk of money laundering and financial crime,” said FCA executive director of enforcement and market supervision Mark Steward.

“We are extremely sorry for the previous Anti-Money Laundering (AML) related controls problems in our Business Banking business between 2012-17 revealed in the FCA's conclusions,” Santander UK CEO Mike Regnier stated.

“While we took measures to remedy our AML vulnerabilities after they were detected, we acknowledge that our AML framework could have been better at the time.” We have subsequently overhauled our financial crime technology, systems, and procedures in order to address this.

NatWest was fined £264.7 million in December for failing to prevent about £365 million in money laundering.

Here is the news from FCA: https://www.fca.org.uk/news/press-releases/fca-fines-santander-uk-repeated-anti-money-laundering-failures

About SANTANDER

Santander is a UK-based financial services company and bank owned by the Santander Group, a Spanish multinational commercial bank.

Santander, which is regulated by the Financial Conduct Authority (FCA), has approximately 14 million active clients in the United Kingdom who utilize their current and savings accounts, insurance products, loans, and mortgages. It has around 452 branches spread throughout the nation.

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