In 2008 money laundering reporting officers (MLRO) will face with a “sharp rise” in fines, as the Financial Services Authority (FSA) cracks down on failures in anti-money laundering.
According to Datanomic, Compliance screening specialist, such measures are taken to ensure financial institutions comply with the Money Laundering Regulations introduced in December 2007. The regulator would start holding MLROs personally liable for failures in money laundering controls as a “warning shot”.
In October, the FSA imposed its first-ever fine on an individual MLRO for their failure to implement effective anti-money laundering measures. Michael Wheelhouse was hit with a 17,500 penalty by the watchdog while his employer, Sindicatum Holdings, was fined 49,000.
William Amos, FSA head of retail enforcement, explain the sanctions as a warning to “firms and individuals” that it will not hesitate to clamp down on failures.
Datanomic chief executive Dr Jonathan Pell said the regulator is “starting to show its teeth”.
Mitigating risk against money laundering is vital to the integrity of the UK’s financial markets, says Jonathan Pell. The message for MLROs is loud and clear – get your house in order or be held personally liable.
L.D.