Link: All change at the top of the FSA
The unnamed businessman is thought to have deposited around £2m between 1998 and 2002 in cash at a Glasgow branch asking staff to draw up 40 bank drafts made payable to the BoI.
Philip Robinson, financial crime sector leader at the FSA, said: ‘Adequate systems and controls are fundamental to the UK anti-money laundering regime’s effectiveness and firms must identify the money laundering risks in their business and take appropriate action to reduce these.
‘These transactions were high-risk in terms of providing scope for money laundering and were in breach of BoI’s policies and procedures. Robinson added that the BoI failed to establish ‘adequate systems and controls to monitor the issuing of bank drafts’ and ‘did not check that its staff understood fully their anti-money laundering responsibilities in relation to the recognition and reporting of suspicious transactions’.