The Financial Conduct Authority (FCA), Britain’s financial watchdog, has announced the need to fine the UK subsidiary of Nigeria’s Guaranty Trust (GT) Bank £7.6 million ($9.3 million) for “further failures in its anti-money laundering systems and controls.”
Between October 2014 and July 2019, the watchdog discovered “serious weaknesses” in anti-money laundering systems.
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According to the FCA, GT Bank failed to conduct adequate customer risk assessments, frequently failing to assess or document the money laundering risks posed by its customers throughout the relevant time.
It also said that GT bank didn’t monitor customer transactions and business relationships.
The Authority said that internal and external sources, including FCA, pointed out “these weaknesses” to GT Bank, but it did not take the necessary steps to address them.
Speaking to defend, Gbenga Alade, Managing Director of GT Bank UK, stated that the bank takes its anti-money laundering obligations very seriously and expressed sincere regret over the FCA’s findings, adding that the FCA discovered no instances of suspected money laundering.
“We would like to assure all our stakeholders and the general public that necessary steps have been taken to address and resolve the identified gaps,” Alade said.
What’s more, the FCA stated that GTBank did not contest its findings and has agreed to settle, qualifying for a 30% discount on the fine, which would have been £11 million otherwise. A moment in history: In August 2013, the FCA fined GTBank £525,000 ($642,127) for severe and systemic failures in anti-money laundering cont
