Two banks operating in the U.K. face fines and censure for allegedly failing to guard against possible customer money laundering, the U.K. Financial Services Authority said Wednesday, after a review of 27 banks turned up "serious weaknesses" in banks' risk controls.
It said the two banks referred to its enforcement division had apparently not done enough to manage high-risk customers, and that it is considering action against additional banks.
An FSA spokesman said he couldn't comment on which banks are involved in the new cases. The study included eight major banks and 19 midsize and smaller banks, all with significant international activities that expose them to money laundering risk.
Despite some good examples of anti-money-laundering risk management, the FSA said it was "concerned to find serious weaknesses common to many firms included in our review."
