Coutts settles with FSA over breach of principle 3
The fine relates to historic activity undertaken between December 2007 and November 2010. Coutts has agreed to pay a fine of £8.75 million as part of the settlement with the FSA.
Coutts has cooperated fully and openly with the FSA throughout the investigation. Coutts accepts the findings contained in the FSA's Final Notice regarding certain failures to meet the relevant regulatory standards between December 2007 and November 2010.
Coutts has found no evidence that money laundering took place during that time.
Since concerns were first identified by the FSA, Coutts & Co has enhanced its client relationship management process which included a review of its AML procedures. As a result of that review, the FSA notes that a number of improvements and recommendations have already been implemented. We are confident that our processes in this area are now robust.
Rory Tapner, Chief Executive of the Wealth division of Royal Bank of Scotland, said: "We are disappointed that Coutts & Co did not meet the FSA’s standards with regard to establishing and maintaining effective AML controls in relation to high risk clients. Since the FSA first raised its concerns, we have implemented a number of improvements to prevent any recurrence of these failings. Regulatory reforms continue apace. We remain committed to ensuring that our systems and controls are robust and counter the risk of financial crime in all the markets in which we operate."
Three members of the Monetary Policy Committee voted last week to raise Bank Rate to 0.5%, a surprise to say the least. At 2.9%, inflation is above target and heading higher. Yet while employment continues to rise, wage growth is slowing, consumers are under pressure and there is enough uncertainty around to think that tightening monetary policy can wait for a while.
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