The Monetary Conduct Authority (FCA) has publicly censured Mohammad Ataur Rahman Prodhan, the previous Chief Govt Officer of Sonali Financial institution (UK) Restricted (SBUK) for anti-money laundering (AML) failings.
Mr Prodhan was the senior supervisor at SBUK with accountability for the institution and upkeep of efficient AML techniques and controls.
Between 7 June 2012 and 4 March 2014, Mr Prodhan didn’t take cheap steps to evaluate and mitigate the AML dangers arising from a tradition of non-compliance amongst SBUK’s workers. He failed to make sure that there was a transparent allocation of tasks to supervise SBUK’s branches, and he additionally didn’t correctly oversee, handle, and useful resource SBUK’s Cash Laundering Reporting Officer (MLRO) perform.
Because of these failings, SBUK’s workers didn’t recognize the necessity to adjust to AML necessities, and the MLRO perform was ineffective in monitoring their compliance. This led to systemic failures in SBUK’s AML techniques and controls all through the enterprise.
The FCA initially determined to impose a monetary penalty of £76,400 on Mr Prodhan in Could 2018. Mr Prodhan referred the case to the Higher Tribunal, the place proceedings have been delayed considerably because of the pandemic and limitations on Mr Prodhan’s skill to journey to the UK from Bangladesh, the place he now resides.
Whereas the FCA considers the monetary penalty to be acceptable, there now exist distinctive circumstances for the case to be resolved by settlement, together with the shortage of any prospect of implementing cost of a monetary penalty.
Mr Prodhan has withdrawn his referral to the Higher Tribunal and agreed to just accept a public censure.
Mark Steward, Govt Director of Enforcement and Market Oversight on the FCA, stated:
‘Mr Prodhan failed to keep up correct anti-money laundering techniques and allowed a tradition of non-compliance among the many financial institution’s workers.
‘Whereas a monetary penalty was acceptable on this case, extended litigation to implement a penalty that’s unlikely to be paid towards an individual who might not be capable of journey to the UK to elucidate himself in individual to the Higher Tribunal is neither sensible nor truthful. In these distinctive circumstances, a public censure is an acceptable decision of the case.’
According to its three-year technique, the FCA continues its work to forestall the potential for hurt to shoppers and the market. The regulator has been clear that companies doing enterprise within the UK should meet its excessive requirements.