Ulster Bank Ireland fined for anti-money laundering and terrorist financing failures

Ulster Bank Ireland has been fined €3.3m by the Central Bank of Ireland for anti-money laundering and terrorist financing failures.

The central bank said that it identified significant failings in the banks’ governance and control of anti-money laundering/countering the financing of terrorism (AML/CFT) outsourcing, and assessment of money laundering/terrorist financing risks.

The bank also failed to conduct sufficient due diligence of customers, and has non-compliance regarding trade finance procedure manuals, adherence to internal procedures, AML/CFT training of non-executive directors, the central bank said.

Central Bank of Ireland director of enforcement Derville Rowland said: “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.”

The breaches, which were admitted by the bank, took place between 15 July 2010 and 2016.

“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,” Rowland added.