Financial sector regulator in the UK, Financial Conduct Authority, has imposed a fine of 896,100 pounds (about Rs 8 crore) on the London branch of Canara Bank for not adhering to anti-money laundering regulations. The regulator has also stopped the bank from accepting deposits for nearly 5 months. The bank said in a filing with the stock exchanges that the senior management at the bank have fully cooperated and engaged with FCA’s investigation and its substantive AML deficiencies now have been rectified. FCA said the reason for this action is because Canara Bank breached Principle 3 (management and control – a firm must take reasonable care to organize and control its affairs responsibly and effectively, with adequate risk management systems) between 26 November 2012 and 29 January 2016. The regulator further said it has reduced the penalty by 30% as the bank agreed to settle at an early stage of FCA’s probe.
