Ulster Bank has been fined €3.3m for breaching anti-money laundering laws

THE CENTRAL BANK of Ireland has fined Ulster Bank more than €3.3 million for breaching an anti-money laundering and terrorist financing law over a six-year period.

The company admitted to eight breaches of the Criminal Justice (Money Laundering & Terrorist Financing) Act between 15 July 2010 and 15 October 2016.

The company failed to put adequate policy in place for services outsourced to other entities in its parent group, which “exposed it to an unacceptable risk” over an 11-month period.

It didn’t conduct assessments of the money laundering and terrorist financing risks to its business for two years.

The firm failed to provide training to non-executive directors on identifying suspicious transactions and activities for four years.

The financial watchdog also identified several times Ulster Bank did not complete adequate customer due diligence, as outlined by the law.

The Central Bank’s director of enforcement, Derville Rowland, said: ”Weaknesses in anti-money laundering controls expose the Irish and global financial system to abuse and threaten to undermine its stability.

“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.”

She added: “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.”