LONDON—The Financial Conduct Authority (FCA) has fined Gatehouse Bank £1,584,100 for significant weakness in its financial crime systems and controls.
Between June 2014 and July 2017 Gatehouse failed to conduct sufficient checks on its customers based in countries with a higher risk of money laundering and terrorist financing, the FCA said. Gatehouse also failed to undertake the correct checks when some of the customers were classed as Politically Exposed Persons, the FCA said.
In one instance, Gatehouse Bank set up an account for a company based in Kuwait to aggregate customer funds, according to Fintech Finance News. Gatehouse Bank did not require the company to collect information about customers’ source of funds or wealth, which was required under Gatehouse’s anti-money laundering policies.
Improper Vetting
As a result, over a two-year period, Gatehouse accepted $62 million into the account without properly vetting the funds for financial crime risks, Fintech Finance News reported.
Gatehouse has subsequently taken significant steps to improve its financial crime systems and controls, according to the FCA.
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