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Subscribe to RSSLONDON - The bank used by Great Britain's queen, Coutts, has been hit with a record fine by regulators for failing to monitor whether money it was handling was the proceeds of crime.
An investigation by Britain’s Financial Services Authority found the institution neither controlled its relationships with new customers, nor did it monitor existing relationships.
The Daily Telegraph reported that the bank failed to carry out correct checks on "politically exposed persons," wealthy foreign politicians and their families, often from troubled countries such as Libya.
The FSA imposed a fine of $13.8 million (8.75 million pounds), the highest ever issued for such failures.
"The failings at Coutts were serious, systemic and were allowed to persist for almost three years," it said in a statement posted on its web site. "They resulted in an unacceptable risk of Coutts handling the proceeds of crime."
It said the fine would have been even higher but the bank qualified for a 30 per cent discount for early payment.
Coutts is part of the Royal Bank of Scotland Group, which is 82-per-cent-owned by the British taxpayer following a 2008 rescue bailout.
The Daily Telegraph said the bank offers free current accounts to customers who invest at least $400,000 (250,000 pounds).
Coutts' parent company said it had not found any evidence that money laundering took place.
In a statement, Rory Tapner, chief executive of the wealth division of Royal Bank of Scotland, said: "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."
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This just goes to show, that the banksters are out in force. YES SIR !!!!! LINE MY POCKETS !! We are above the law and will what ever we please, till we get caught.
In America when they get caught they get a bailout.
I note that there is no reference to actual money laundering that supposedly took place, only that the bank had conditions in it which would have allowed money laundering.
The bank probably did have holes in its controls big enough for a drug kingpin or a former head of a government to drive a truck full of cash through.
And the bank probably made at least 10 times the fines on the transactions.
Pay the fine and move on. If you fight the fine, they keep looking and might actually find the real crimes that have taken place.
The same needs to happen in latin america, Panama, Costa Rica etc. Several malls and condos are going up with funds from foreigners who use the locals with some influence as fronting. People are raising questions, but the US is not biting anything out there. Briefcases are passing through customs. These are corporate drug kingpins. North Americans are surfacing in middle-income neighborhoods, marrying certain of women to obtain residence and in the meantime getting to meet some of the honchos to set up business. There is a current situation in Heredia, Costa Rica where the American neighbor engages in drug parties, etc but because he is married to a relative of a local honcho, the authorities have failed to intervene. He is awaiting residency documents. The US embassy has not heeded their complaints.
im sure they made more than they were fined
But seeing as Coutts is a part of RBS which in turn is owned thanks to bailouts by the British taxpayers, the fine will in turn be paid for by the taxpayers.
Banker: "Pardon me, guv'nor, but would you mind filling out this form before I take your deposit. Regulations, you know. Merely a formality. Your deposits will be as safe as the crown jewels"
Horrible title - It makes it sound like the Queen was involved. Shameful, Mr. Jamieson!
Haven't you noticed her low criminal forehead, the close set beady eyes? Kingpin for sure.
I also draw your attention to Prince Charles, who wakes up next to a horse head every morning.
It was done better in my day!
Agree. Bankers are Bankers world wide. They CEO's of all banks and their little minions that work for them take the money and don't give a crap about where it came from.
The old "above the law" is alive and well in Britain as well as the U.S. And just like the U.S. no one will serve time for a crime that they knew was going on.
Fined yes, but BFD. Like they lose any sleep over a messily 8 million. Pocket change to CEO's.
Just think of the criminal monies that are in a SWISS bank account.
Yet John Corzine walks away with hundreds of millions cause he donated heavily to the president and is good friends with Barney Frank and of course was a Goldman Sachs guy!
Defamation!
Now, Alastair,
I just wrote to the authorities yesterday about how the president and Congress is laundering money out of the United States to the Bank of India, Arab Emirates and other uncommon "friends" to this nation away from New England families - selling off our ancestral grounds, landmarks and real property, and forcing local citizens out of the region.
So, why would NBC publish this lie? In malicious defamation?
Because that is what this article is. For the record.
i guess when the banksters and wall street own the poilitiians they think they can do anything they want, and they will because this wont go much further as they also own the media
It said the fine would have been even higher but the bank qualified for a 30 per cent discount for early payment.
Now I know the Brits are mad!! A discount on the fine for early payment!!??
What happens if the check bounces?
It is a misleading and disgraceful headline.
Yellow journalism, plain and simple.
"Coutts' parent company said it had not found any evidence that money laundering took place."
No, they just paid almost 14 million dollars, and early at that, because it was easier then arguing about it. "Oh, 14 million. We'll we didn't do anything wrong but yeah, here take it." And of course 82% of that fine is tax payer money now anyway. And again, no mention of anyone going to jail...
14 Million? Peanuts! i want to know if the old Queen stashed any away for her prime days. Banksters have no place in human evolution.
I adore the British people but now see where we Americans got the nasty bad financial habits.
So they must be doing business with the Catholic Church.
"We are not amused"
Zions Bank of Utah was caught laundering $12.3 billion dollars from 8 Mexican Drug Cartells.
This happened in 2006 and 2007.
They paid $8 million in fines in 2011, for violating the Patriot Act.
Zions then received $1.4 billion of TARP money and another $5.2 billion in short term notes.
Then instead of loaning it out ,they hoarded it, and loaned it back to the government at a profit.
all right already, how do you get into banking? I think we should all be bankers. Does owning guns helps get your foot in the door?
Another case of the fox watching the hen-house.
God save the queen
She ain't no human being
There is no future
In England's dreaming
Obama has an account in the same bank.