FCA fines ADM Investor Services International Limited £6m for financial crime control failings

FCAAMLFine
Written By Richard Wegrzyn

ADM Investor Services International Limited (ADMISI), a broker, has been fined over £6m for inadequate anti-money laundering (AML) systems and controls. 

The business model and client base presented potentially high levels of money laundering risk. The FCA had raised concerns with ADMISI previously about its AML systems, including the relating to client risk rating and they stressed the need to make improvements.

However, during a follow-up visit in 2016, the FCA found significant failings. In particular: 

  • The firm’s 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 on-going monitoring in the form of periodic customer reviews.  

  • Policies were outdated and referred to old legislation.   

Avyse Partners are an official content partner of the International Compliance Association. The ICA is the leading professional body for the global regulatory and financial crime compliance community.  ICA Members can gain access to Member-only content developed in partnership with Avyse that shares insights and best practice to help you meet the challenges of today and tomorrow.  Not yet an ICA Member? Join here

Richard Wegrzyn https://www.avyse.co.uk
Previous

Proceeds of fraud - Detecting and preventing money mules
Next

Sanctions systems and controls: FCA’s assessment of firms’ response to increased sanctions