Final Notice To Former CEO For Anti-money Laundering Failings
Summary
The FCA has publicly censured Mohammad Ataur Rahman Prodhan, the former Chief Executive Officer of Sonali Bank (UK) Limited (SBUK) for AML failings.
Prodhan was the senior manager at SBUK with responsibility for the establishment and maintenance of effective AML systems and controls. But, between 7 June 2012 and 4 March 2014, he failed to take reasonable steps to assess and mitigate AML risks arising from a culture of non-compliance among SBUK staff. He failed to ensure that there was a clear allocation of responsibilities for overseeing SBUK’s branches. He also failed to properly oversee, manage, and resource SBUK’s Money Laundering Reporting Officer (MLRO) function.
As a result of these failings, SBUK staff did not appreciate the need to comply with AML requirements, and the MLRO function was ineffective in monitoring compliance. This led to systemic company-wide failures in SBUK’s AML systems and controls.
The FCA initially decided, in May 2018, to fine Prodhan £76,400. Prodhan then referred the case to the Upper Tribunal, where proceedings were much delayed due both to the pandemic and Prodhan’s restricted ability to travel to the UK from Bangladesh, where he now resides.
The FCA still considers a financial penalty appropriate but has said it believes the exceptional circumstances - including the poor prospects for enforcing payment - mean the case can be resolved by agreement. Prodhan has withdrawn his referral to the Upper Tribunal and agreed to accept a public censure.
The FCA’s Mark Steward said ‘Mr. Prodhan failed to maintain proper anti-money laundering systems and allowed a culture of non-compliance among the bank’s staff. While a financial penalty was appropriate, prolonged litigation to enforce a penalty that is unlikely to be paid against a person who may not be able to travel to the UK to explain himself to the Upper Tribunal in person is neither practical nor fair. In these exceptional circumstances, a public censure is an appropriate resolution.’