Santander fined ￡108M for AML failings, France unveils bid to host AMLA, EU Finance Ministers give green light to AML package and Rabobank accused of

Santander fined ￡108M for AML failings, France unveils bid to host AMLA, EU Finance Ministers give green light to AML package and Rabobank accused of?due diligence failures.

BRITAIN’S Financial Conduct Authority (FCA) today announced it has fined Santander almost ￡108M for AML failures in its business banking division.

The FCA ruled the UK division of the Spanish bank had failed to manage its anti-money laundering systems properly – affecting the way it dealt with 560,000 business customers.

Between 2012 and 2017 the bank’s systems were not able to verify properly information provided by customers about their businesses.

“Santander’s poor management of their anti-money laundering systems and their inadequate attempts to address the problems created a prolonged and severe risk of money laundering and financial crime,” said Mark Steward, executive director of enforcement and market oversight at the FCA.

FRANCE?has?officially?launched its bid to host?Europe’s?Anti-Money Laundering Authority (AMLA) in Paris.?

The decision has been backed by French President Emmanuel Macron who said basing AMLA in Paris would enable the authority to “benefit fully” from the “synergies with the FATF, the European Banking Agency and the European Securities and Markets Authority, already based there, strengthening the Union’s leading role in this crucial area,”

It’s clear the French government is putting a big budget behind its marketing campaign. In fact the cost of campaigning was one of the reasons given by Holland’s finance minister when they pulled the plug on a bid to host AMLA in the Hague.

Paris?boasts a high density of tech firms with more than 362,000 people working in the financial sector,?with the?stock exchange recently posting a higher market capitalisation than London.?

Now we’ll see who packs the bigger clout in Europe – the French or the Germans (Frankfurt)?

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EU?finance ministers?this week gave?the green light to Brussels’ new AML?regulation, with all 27 Member States agreeing to forgo their autonomous blacklist of jurisdictions and move to the FATF watchlist.

The 27 Member States also agreed that the regulation will cover crypto transactions worth more than?€1,000 and will place reporting obligations on jewellers and goldsmiths.

At a meeting of the European Council, Member States agreed their position on the AML regulation and new directive (AMLD6). The regulation will now see the establishment of the new AML Authority and outlaw cash transactions of more than €10,000.?

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BACK?in the Netherlands meanwhile,?the Dutch government has launched an investigation into Rabobank for alleged money laundering violations.?

Public prosecutors in the Netherlands are investigating the lender for suspected violations of national money laundering regulations, while bank officials have said they are cooperating with the investigation.

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Message from Seneca College:?Seneca, one of Canada's leading postsecondary institutions has unveiled an AML Governance executive certificate, it’s been announced.

Offered through flexible delivery, this?course is designed for leaders and managers in the AML and Compliance space, who want to enhance and develop their skills and executive presence.

Learners will be taught by expert faculty and guest speakers working in the industry and will also gain hands-on experience in the sector. Courses are scheduled for Wednesday evenings, allowing students to continue to work full time. More details on this exciting development here:?CLICK HERE

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TAKE NOTE: The next meeting of the FinCrime Intelligence Network (FCIN) takes place in the City of London on February 22 next.

We will send official invitations to members shortly. If you are a senior Anti-Financial Crime executive in UK banking or law enforcement and would like to join the think-tank meetings, express your interest in an email to Elizabeth Hearst,?[email protected]

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WOMEN IN FINCRIME:?The re-scheduled date for the award-winning #WomeninFinCrime Summit is February 9 next. We will announce the speaker list, our new partner and details in the next few days!

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ALL THIS WEEK’S BIG STORIES are below:

CORPORATE GIFT:?Give the Christmas gift that will please every Anti-Financial Crime professional this year - an 'AML Intelligence' Membership.

Department leaders can purchase a corporate 'AML Intelligence' Membership for your team.

Alternatively, you can buy individual Memberships. Our members get access to our premium content, complimentary access to our award-winning conferences and access to 'Regulatory Watch.'

Find out more here now: Go to?https://lnkd.in/eMbkm6p

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Message from Seneca College:?Seneca, one of Canada's leading postsecondary institutions has unveiled an AML Governance executive certificate, it’s been announced.

Offered through flexible delivery, this?course is designed for leaders and managers in the AML and Compliance space, who want to enhance and develop their skills and executive presence.

Learners will be taught by expert faculty and guest speakers working in the industry and will also gain hands-on experience in the sector.

Courses are scheduled for Wednesday evenings, allowing students to continue to work full time. More details on this exciting development here:?CLICK HERE

NOW HERE’S YOUR NEWSFEED ON ALL MATTERS

AFC AND AML THIS WEEK:

BREAKING: Britain's financial regulator the?Financial Conduct Authority?today announced a fine of almost ￡108M against?Santander UK?for AML failings.

The bank serially ignored its own red flags - and even instruction from law enforcement. The scale of the fine represents the 560,000 business customers who weren't properly managed.

"Santander’s poor management of their anti-money laundering systems and their inadequate attempts to address the problems created a prolonged and severe risk of money laundering and financial crime,” said the?#FCA's Mark Steward

The regulator highlighted one case involving an account belonging to a customer with a small translations business. The company expected monthly deposits of ￡5,000 but within six months it was receiving millions in deposits and quickly moving the money elsewhere.

#Santander?CEO Mike Regnier (pictured) said: “While we took action to address our AML issues once they were identified, we accept that our AML framework at the time should have been stronger."

Only a quick admission of guilt spared the bank from an adjudicated fine of ￡154M. For the full story behind this incredible lack of transaction monitoring, go to?amlintelligence.com

FRENCH BID FOR AMLA:?France has?launched?its official bid to host the EU’s Anti-Money Laundering Authority (AMLA) in Paris.?

In a statement, the French Government said the country plays a “leading role” in the fight against money laundering having received an “unprecedented rating” from the Financial Action Task Force for its AML/CFT effectiveness.?

“The French AML/CFT framework was described as ‘robust and sophisticated with a high level of effectiveness in the investigation and prosecution of financing of terrorism, confiscation of criminal assets and international cooperation,” said the statement.?

Read the story here:?France unveils official bid to host AMLA

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GREEN LIGHT:?European Member States on Wednesday gave their backing to Brussels' new AML?package?in a boost for Commissioner Mairead McGuinness.

Significantly the 27 Member States have agreed to replace their autonomous blacklist of jurisdictions and move to the FATF watchlist. Officials in Brussels had felt the EU watchlist categories had presented an elevated threat of financial crime.

At a meeting of the European Council, Member States agreed their position on the AML regulation and the new directive (AMLD6). The regulation will see the establishment of the new AML Authority and outlaw cash transactions of more than €10,000.

Find the story here:?Finance ministers green light Brussels AML package – including ban on €10k+ cash payments

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RABOBANK IN HOT WATER:?The Dutch government has?launched?an investigation into Rabobank (RABO.UL) for alleged money laundering violations.

Public prosecutors in the Netherlands are investigating the Dutch cooperative bank for suspected violations of national money laundering laws, according to Reuters.?

In a statement, bank officials said they were cooperating with the investigation.?

?Read the full story here:?Rabobank accused of due diligence breaches and ordered to fix practices or face ‘punitive’ procedure

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ACCOUNTABILITY RESET:?Britain is to?dilute?its senior managers' accountability regime, it has been signalled by the Chancellor.

The UK's “senior managers’ regime” was introduced after the 2008 financial crisis and held executives personally responsible for decisions.

The regime has since 2016 forced senior executives at banks, building societies and credit unions to take personal responsibility for infractions if they had not taken “reasonable steps” to prevent them. Penalties range from fines to bans.

Read the story here:?Britain set to dilute impact on bankers of senior manager’s accountability regime, Chancellor indicates

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LARGE FINE:?The United Arab Emirates (UAE) has?penalised?an exchange house DH1.92M (€497K) for failing to comply with?compliance regulations.

The Central Bank of the UAE (CBUAE) imposed the fine on the exchange house for violations of the law on anti-money laundering (AML) and terrorism financing, according to The National News.

Find the story here:?UAE fines exchange house DH 1.92M (€497K) for ‘weak’ compliance framework and AML shortcomings

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AUSTRAC'S ACCUSATIONS:?The Australian government has?launched?civil proceedings against SkyCity Entertainment Group's Adelaide casino (SKC.NZ).

The Australian Transaction Reports and Analysis Centre (AUSTRAC) accused SkyCity, which is listed on the New Zealand bourse, of breaching anti-money laundering (AML) and anti-terrorism financing laws, according to Reuters.?

Read the story here:?AUSTRAC accuses SkyCity casino in money laundering case

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IMPROVED REGULATION:?The UK’s Financial Conduct Authority (FCA) has?called?for beefed-up regulation following?the collapse of crypto exchange FTX.?

The crypto scandal left 80,000 investors in Britain with losses despite the platform not being registered in the country, according to Reuters.

Find the story here:?UK watchdog calls for improved regulation following FTX crypto collapse

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Have a great Friday??

Elizabeth and Alisha and the team at AML Intelligence.