FCC Flash

On September 29, 2023, the Financial Conduct Authority (FCA) fined ADM Investor Services International Limited (ADMISI), a London-based brokerage company, US$7.8 million for significant deficiencies in its anti-money laundering (AML) controls. ADMISI’s business model, customer base, and the presence of Politically Exposed Persons as clients posed high money laundering risks.

To know more, read https://www.fcctimes.com/2023/10/02/fca-imposes-6-5-million-penalty-on-adm-investor-services-for-money-laundering-risk-failures/

The FCA had raised AML concerns in 2014, expecting improvements. However, during a visit in 2016, substantial issues persisted:

  • Inadequate AML customer risk assessment.
  • Lack of firm-wide money laundering risk assessment.
  • Insufficient ongoing monitoring, including customer reviews.
  • Outdated policies referencing old legislation.

ADMISI agreed to remedial actions in 2016, such as not accepting high-risk customers. By October 2016, new AML policies were introduced, and the requirements were lifted in January 2018. The firm acknowledged the findings and received a 30% settlement discount, resulting in a US$7.8 million fine.