FCA admonishments ex-CEO for cash laundering failings

The Economic Conduct Authority has actually openly censured Mohammad Ataur Rahman Prodhan, the previous ceo of Sonali Financial institution (UK) Limited (SBUK), for anti-money laundering failings.

Mr Prodhan was the elderly supervisor at SBUK with obligation for the facility as well as upkeep of efficient AML (anti-money laundering) systems as well as controls.

In 2016 the financial institution was fined ₤ 3.25 m (marked down from ₤ 4.6 m under the FCA’s exec negotiation treatments) as well as was outlawed for 168 days from approving down payments from brand-new consumers.

The FCA claimed that in between 20 August 2010 as well as 21 July 2014, the financial institution fell short to implemented appropriate anti-money laundering (AML) systems as well as in 2015 fell short to alert the authority of a presumed fraudulence.

In August this year, adhering to regulative activity by the Prudential Guideline Authority, SBUK terminated its authorisation. The financial institution has actually given that been reorganized as well as in August was relabelled Sonali Bangladesh UK Limited. Sonali Bangladesh UK Limited remains to trade as well as an arm of the financial institution remains to supply compensation solutions to British Bangladeshis.

In connection with Mr Prodhan, that currently resides in Bangladesh, the FCA claimed that in between 7 June 2012 as well as 4 March 2014, he fell short to take “sensible actions” to examine as well as alleviate the AML (anti-money laundering) dangers emerging from a “society of non-compliance amongst SBUK’s team.”

The FCA claimed he additionally fell short to make certain that there was a clear allowance of obligations to manage SBUK’s branches as well as he additionally fell short to effectively manage, handle as well as source SBUK’s Cash Laundering Coverage Police Officer (MLRO) feature.

The regulatory authority claimed that as an outcome of the failings, SBUK’s team did dislike the demand to abide by AML needs as well as the MLRO (Cash Laundering Regulatory Policeman) feature was “inefficient” in checking their conformity. This brought about systemic failings in SBUK’s AML systems as well as controls throughout business.

The FCA claimed today that originally it chose to enforce a punitive damages of ₤ 76,400 on Mr Prodhan in Might 2018. Mr Prodhan appealed the situation to the Upper Tribunal, where procedures have actually been postponed substantially as an outcome of the pandemic as well as restrictions on Mr Prodhan’s capability to take a trip to the UK from Bangladesh, where he currently lives.

The FCA claimed that while it thinks about the punitive damages to be ideal, there were currently “extraordinary situations” for the situation to be fixed by contract, consisting of the absence of any type of possibility of applying settlement of a punitive damages.

Mr Prodhan has actually withdrawn his reference to the Upper Tribunal as well as consented to approve a public admonishment.

Mark Guardian, executive supervisor of enforcement as well as market oversight at the FCA, claimed: “Mr Prodhan fell short to keep correct anti-money laundering systems as well as enabled a society of non-compliance amongst the financial institution’s team.

” While a punitive damages was ideal in this situation, extended lawsuits to implement a charge that is not likely to be paid versus an individual that might not have the ability to take a trip to the UK to describe himself face to face to the Upper Tribunal is neither sensible neither reasonable. In these extraordinary situations, a public admonishment is an ideal resolution of the situation.”