Britain’s financial watchdog has fined the UK subsidiary of Nigeria’s Guaranty Trust Bank £7.6 million for what it described as significant failures in its anti money laundering systems and controls.
The Financial Conduct Authority said its investigation uncovered serious weaknesses in the bank’s processes between October 2014 and July 2019, particularly in areas designed to prevent financial crimes.
According to the regulator, the bank failed to carry out adequate customer risk assessments and often did not properly evaluate or document the money laundering risks associated with its clients.
The FCA noted that these deficiencies had been repeatedly raised by both internal and external reviewers, including the regulator itself, but were not adequately addressed within the period under review.
Responding to the development, the managing director of GTBank UK, Gbenga Alade, said the institution takes its anti money laundering responsibilities seriously and acknowledged the regulator’s findings with regret.
He, however, clarified that the investigation did not identify any actual cases of money laundering linked to the bank. He added that corrective measures have since been implemented to address the identified gaps and strengthen compliance systems.
This is not the first time the bank has faced sanctions from the UK regulator. In August 2013, the FCA fined the institution £525,000 for similar systemic failures related to anti money laundering controls.
The regulator stated that the bank accepted its findings and agreed to settle the case, qualifying for a 30 percent reduction in the penalty. Without the discount, the fine would have been approximately £11 million.
The case underscores the increasing scrutiny by global regulators on financial institutions to maintain robust compliance frameworks and prevent the misuse of banking systems for illicit financial activities.
