- FCA penalized Canara bank for significant failures regarding AML systems, controls.
- Nov. 2012, Mar. 2013 FCA visited Canara as part of Trade Finance Thematic Project.
- Canara placed on notice of serious weaknesses identified in AML systems, controls.
- Canara confirmed remedial steps taken but FCA testing in Apr. 2015 showed steps were insufficient and Canara had failed to test their implementation, effectiveness.
- Additional significant weaknesses were also identified, including a failure to embed a culture of compliance with the regulatory requirements throughout the firm.
- In Jan, 29, 2016 a report by PRA appointed skilled person highlighted deficiencies.
- Failings endemic throughout UK operations suggesting Canara not fit and proper.
- Failures included senior management, governance/oversight, three lines of defense.
money laundering reporting function, anti-money laundering systems and controls.
- Breach of Principle 3 (taking reasonable steps to organize its affairs responsibly and effectively, with adequate risk management systems) of Principles for Businesses.
- Canara had invested significant resource to improve its AML systems and controls.
- New MLRO with previous AML experience appointed, increased training for managers.
- And had retained services of external consultants to assist in the remediation work.
- Designed and embedded enhanced systems and controls to remediate the gaps.
- Senior management at Canara fully co-operated, engaged with FCA’s investigation.
- FCA fined Canara bank £896,100 for significant deficiencies in AML systems, controls.
- Also imposed 147 day restriction regarding regulated activities not to accept deposits from customers who did not already hold deposit account with Canara on Jun.6, 2018.
- Canara agreed to settle at early stage of investigation so qualified for 30% discount.
- Otherwise fine would have been £1,280,175 with a 210 day restriction on deposits.