FCA fine ADM Investor Services
What has happened?
What are the key points in relation to this fine?
The nature of ADMISI’s business and client base presented potentially high levels of money laundering risk because of its business model, the geographical location of its customers, the proportion of its business involving high-risk clients, and because it had Politically Exposed Persons as clients. It has market coverage extending, but not limited to, energy, base metals, foreign exchange, and cocoa.
The FCA had raised concerns with ADMISI in 2014 about its AML systems, including the absence of a formal process to classify customers by risk. The FCA expected ADMISI to make improvements.
However, during a 2016 firm visit, the FCA found significant failings remained. In particular:
- The firm’s AML customer risk assessment was basic and did not enable an assessment of a customer’s financial crime risk. It did not conduct a firm-wide money laundering risk assessment. There was little evidence of adequate ongoing monitoring in the form of periodic customer reviews.
- Policies were outdated and referred to old legislation.
After the 2016 visit, ADMISI agreed to FCA requirements, including one not to take on business from high-risk customers in order to lessen the threat of the firm being used to launder money or finance crime. By the end of October 2016, ADMISI had introduced AML policies and procedures to address the concerns identified. After further remedial action, the requirements were lifted in January 2018.
How can Thistle Initiatives help?
Thistle Initiatives has supported firms for over 10 years as a trusted compliance and regulatory advisor. In addition to assisting you as-and-when, our team of specialists can serve as your right hand in meeting and complying with FCA regulation. We understand the importance of staying up-to-date and compliant and are dedicated to providing the guidance and support needed to do so.
Are you looking for help with your financial crime arrangements, or more general regulatory questions? Contact our specialist team now to schedule a free consultation. Get in touch with us by calling 020 7436 0630 or sending an email to firstname.lastname@example.org.