uk's al rayan bank fined $4.9 million fine for money laundering control failure by fca

UK’s Al Rayan Bank fined $4.9 million fine for Money Laundering Control Failure By FCA


UK’s Al Rayan Bank fined $4.9 million fine for failing to adequately monitor the source of its customers’ funds

Al Rayan is a subsidiary of Masraf Al Rayan, Qatar’s second-largest bank by market value. Al Rayan Bank, the U.K.’s largest Islamic bank, will pay equivalent to about $4.9 million, for failing to maintain sufficient money-laundering protections, regulators said Wednesday.

also read shariah investment funds

uk's al rayan bank fined
UK’s Al Rayan Bank fined $4.9 million fine for Money Laundering Control Failure By FCA

The fine stems from a two-year period during which the bank failed to perform required checks into the source of its customers’ wealth, according to the U.K. Financial Conduct Authority, which brought the regulatory action.

The penalty is the second that the FCA has levied this week for anti-money-laundering failures. The regulator on Tuesday imposed a £7.6 million fine on Guaranty Trust Bank UK Ltd

The problems at Al Rayan, which occurred between 2015 and 2017, were aggravated by a lack of proper training for staff about how to handle large deposits. The bank was aware of the weaknesses in its anti-money-laundering program and failed to fix them, even after the FCA raised concerns, the regulator said.

After an inspection by the FCA in 2017, Al Rayan agreed not to take on additional high-risk customers. That restriction has been lifted, though the bank remains subject to some limited constraints, the FCA said Wednesday.


In a statement, Al Rayan Chief Executive Giles Cunningham said the bank cooperated with the FCA’s inquiry and that the fine wouldn’t have a material impact on its financials.

“Maintaining strong defenses against the evolving threats of financial crime is an essential part of our business plan and is being led by the new board and executive team,” Mr. Cunningham said.

Reference: Wall street journal and twitter

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