FSA Fines RZB London for Breach of Money Laundering Rules
The Financial Services Authority (FSA) has fined Raiffeisen Zentralbank Bterreich's London branch (RZB London) GBP150,000 for breaches of their Money Laundering Rules.
The FSA's investigation found that RZB London failed to act promptly to update its anti-money laundering (AML) and compliance manual, last updated in 1999, to reflect the introduction of the FSA's Money Laundering Rules in 2001. RZB London's compliance manual did not include sufficient assistance to staff to enable them to comply with identification requirements for certain categories of customers. This exposed RZB London to an unacceptable risk that it would be used to launder money.

These failings occurred despite increased regulatory emphasis on the importance of effective anti-money laundering controls before and since the introduction of the FSA's Money Laundering Rules.

After the failings were identified RZB London devoted considerable resources to implementing a comprehensive remedial action plan which has resulted in appropriate controls being introduced.

Andrew Procter, FSA Director of Enforcement, said: "All UK-based regulated firms must have adequate anti-money laundering procedures in place for client identification and verification to avoid breaching the Money Laundering Rules."