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UK: FCA IMPOSES £6.47M FINE ON LONDON-BASED MULTI-ASSET BROKER FOR AML SHORTCOMINGS


Broker

The Financial Conduct Authority (FCA) has fined a London-based multi-asset broker £6,470,600 for failing to establish adequate anti-money laundering processes and systems. ADM Investor Services International Limited (ADMISI) has an important number of high-risk customers and clients who are Politically Exposed Persons (PEPs). The FCA raised concerns during a 2014 assessment – for example, that the company was not categorizing its clients according to risk level, even though this should inform the intensity of AML checks and frequency of KYC reviews. ADMISI was also found to take on clients from a ‘blacklisted’ country and its onboarding decision-making process was unclear.


During a 2016 visit, the FCA found several ongoing shortcomings such as outdated policies that refer to old legislation, a lack of financial crime risk assessments of customers, the absence of a firm-wide money laundering risk assessment, and inadequate ongoing monitoring of clients. The company agreed to requirements following the visit – which meant they got a 30% discount on their fine – and made adjustments to address the concerns. The FCA notably asked ADMISI to refrain from accepting new high-risk clients until its systems and controls had been adopted.





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