Release Date: 2nd October 2023

To access the original FCA document, click here.

Summary

ADM Investor Services International Limited (ADMISI) has been fined £6,470,600 by the Financial Conduct Authority (FCA) for failing to implement adequate anti-money laundering (AML) systems and controls. This penalty, which was reduced from £9,243,738 following a 30% settlement discount, highlights ADMISI’s significant failings in managing AML risks between 30 September 2014 and 31 October 2016.

Key Takeaways for Other Firms:

• Implement Robust AML Systems: Ensure comprehensive AML frameworks are in place and operational, including client risk assessments and compliance monitoring.
• Regular Risk Assessments: Conduct firm-wide money laundering risk assessments periodically to stay compliant with current regulations and legislation.
• Adequate Client Onboarding: Develop and maintain formal procedures for client onboarding, including detailed enhanced due diligence (EDD) and politically exposed person (PEP) checks.
• Prompt Remediation: Act swiftly on regulatory findings and remediate identified weaknesses to avoid prolonged exposure to AML risks.
• Quality Control and Monitoring: Maintain high standards in compliance monitoring, regularly updating AML policies and procedures to reflect current legal requirements.

Conclusion:

The FCA’s penalty against ADMISI underscores the importance of rigorous AML systems and effective risk management in the financial sector. Firms must ensure they have robust controls in place and respond promptly to regulatory feedback to avoid significant penalties and protect the integrity of the financial system.