Ulster Bank Fined Over €3m For Breaches Of Money Laundering

Ulster Bank has been fined over €3million for breaches of money laundering and terrorist financing.

The Central Bank of Ireland fined Ulster Bank a total of €3.3m after it admitted the breaches occurred over a six year period.

An investigation found significant failings, however no actual money laundering or financing of terrorism was identified.

Director of Enforcement, Derville Rowland, said: "Robust frameworks, systems and controls must be the cornerstone of credit and financial institutions' compliance with anti-money laundering legislation. Weaknesses in anti-money laundering controls expose the Irish and global financial system to abuse and threaten to undermine its stability. In today's global environment, the threat of money laundering and terrorist financing requires credit and financial institutions operating in Ireland to rise to the challenge of managing and mitigating these risks.

"Ulster Bank Ireland's breaches are especially concerning as they point to unacceptable weaknesses in key aspects of its anti-money laundering framework, systems and controls over an extended period of time. As one of the largest retail banks in Ireland, Ulster Bank Ireland provides a gateway to the financial system for more than one million customers through its extensive network of branches, online and telephone banking. Therefore, it is imperative that it vigorously applies the highest levels of anti-money laundering compliance in order to protect, not only itself, but its customers and the wider financial system. Firms play a vital role in assisting An Garda Síochána and the Revenue Commissioners in their investigation of money laundering and terrorist financing through the detection and reporting of suspicious activity.

"This case also highlights that firms who outsource must have in place appropriate controls to oversee outsourced activity, which must be documented and clear. This is even more critical where the outsourcing is within the group because these situations tend to foster a misplaced sense of complacency regarding regulatory compliance. Of course, the effectiveness of such controls is contingent upon a firm’s commitment to observing them."

(CD)