The U.K. Financial Services Authority fined Turkish Bank (UK) Ltd. 294,000 pounds ($457,000) for failing to establish proper controls preventing money laundering.
The company, a subsidiary of Northern Cyprus-based Turkish Bank Ltd., didn’t have adequate policies to manage its relationships with other banks, didn’t carry out due diligence on those banks and failed to keep proper records, the FSA said in a statement.
“Turkish Bank fell far short of the standards we expect of firms in managing their money laundering risks,” said FSA director of enforcement Tracey McDermott. “This was despite clear warnings from the FSA that it needed to improve.”
HSBC Holdings Plc had to apologize and set aside $700 million for fines after U.S. senators found failings in its money-laundering controls gave terrorists and drug cartels access to the U.S. financial system.
Turkish Bank would have had to pay 420,000 pounds had it not cooperated and settled at an early stage, the FSA said. Ufuk Gungor, assistant general manager at the Borough High Street branch of Turkish Bank, declined to comment.