Reported by HENRY POPE

Al Rayan Bank and Guaranty Trust Bank(GTBank) were fined four million pounds (US$4.9 million) and 7.6 million pounds ($9.3 million), respectively, for failing to vet their customers’ transactions for signs of money laundering activity and for failing to train their staff on how to properly conduct enhanced customer due diligence (EDD) checks.

In the FCA’s final report on the Al Rayan case, the regulatory body determined that, between April 2015 and November 2017, the bank’s EDD protocols were not up to code in determining the source of wealth for high-risk customers when they wished to open an account.

Not only that, but it was determined that Al Rayan was underperforming in its efforts to properly screen for terrorist financing; between 2009 and 2017, no internal audits of the bank’s Financial Crime Unit were ever performed.

Meanwhile, in the financial watchdog’s report on GTBank, it was found that, between October 2014 and July 2019, the bank did not “take appropriate remedial action to rectify the weaknesses” in its anti-money laundering protocols, discovered by internal audits.

And during a June 2017 inspection, the FCA found that significant weaknesses persisted within the bank’s anti-money laundering, sanctions and terrorist financing systems, despite being warned of such vulnerabilities almost three years prior.

Read full report: https://www.occrp.org/en/daily/17240-uk-fca-fines-banks-for-anti-money-laundering-shortcomings