The Financial Conduct Authority has fined Guaranty Trust Bank UK £7,671,800 for serious weaknesses in its anti-money laundering systems and controls.

Between October 2014 and July 2019, GT Bank failed to undertake adequate customer risk assessments, often not assessing or documenting the money laundering risks posed by its customers. It also failed to monitor customer transactions and business relationships to the required standard.

Despite repeated warnings, the watchdog said the GT Bank failed to take appropriate action to fix the weaknesses.

Mark Steward, executive director of enforcement and market oversight at the FCA, said:
“GT Bank should have acted quickly to put in place adequate AML controls following its fine in 2013 but it failed to do so. GT Bank did not develop a plan that was capable of addressing its AML weaknesses, exposing it and the broader market to financial crime risks for a prolonged period.

“Firms must protect themselves and those dealing with them from financial crime risks, especially money laundering. The FCA is determined to ensure the market for financial services is safe, clean and trusted with robust systems and controls in place to stymie financial crime. The FCA will continue to take action when these standards are not met.”

GT Bank has not disputed the FCA’s findings and agreed to settle, as such qualifying for a 30% discount. The financial penalty would otherwise have been £10,959,700.

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