Britain’s financial regulator has fined the UK arm of South Africa‘s Standard Bank Group 7.6 million pounds ($12.6 million) for lax anti-money laundering controls of corporate customers linked to people holding prominent public functions.
Reports by both Reuters and Bloomberg quotes the The Financial Conduct Authority (FCA) as saying it was the first time it had brought a case that focused on commercial banking.
“If they (banks) accept business from high risk customers they must have effective systems, controls and practices in place to manage that risk. Standard Bank clearly failed in this respect,” said Tracey McDermott, head of the FCA’s enforcement and financial crime division.
The news has tarnished the image of the Bank which is fast growing in Africa including Malawi.
There has not been any reaction from the Standard Bank Group on the matter.