UK regulator fines Ghana International Bank £5.8 million

Ghana International Bank PLC (GIB) has been fined 5.8 million pounds by a United Kingdom regulator – Financial Conduct Authority (FCA) for failing to adhere to anti-money laundering and counter-terrorist financial controls.

The breach in the anti-money laundering and counter-terrorist control, the FCA said, happened over its correspondent banking activities between January 1, 2012 and December 31, 2016.

According to the FCA’s decision notice, when banks fail to implement and adhere to their legal and regulatory anti-money laundering obligations, the risk that they will be used to facilitate money laundering or terrorist financing is increased.

“During the Relevant Period, the monetary value of funds flowing between GIB and its respondent banking customers, net of transfers between customers’ own accounts and fixed deposits, totalled 9.5 billion,” part of the decision notice read.

“When banks fail to implement and adhere to their legal and regulatory anti-money laundering obligations, the risk that they will be used to facilitate money laundering or terrorist financing is increased… It can lead to criminals abusing the financial system to launder the proceeds of crime, supporting further criminal activity and damaging the integrity and stability of the UK financial system,” it explained.

FCA’s decision notice pointed out that, “No evidence of actual money laundering was detected, though the risk of money laundering as a result of these deficient systems was significant.”

The Ghana International Bank has secured a 30% discount and is ready to cooperate with the UK financial regulator to resolve this issue to improve financial crime controls.