FSA has fined Alpari (UK) Ltd £140,000 and fined its former MLRO £14,000 for failing to have in place adequate AML systems and controls. It found the firm, an online speculative fx service provider, did not carry out satisfactory customer due diligence or monitor accounts adequately. The failings were particularly serious because:
- several customers were from high-risk jurisdictions;
- it did not have proper systems to check whether customers were PEPs or designated on sanctions lists; and
- it did not expand its AML resource or systems in line with a sharp increase in customers.
It placed too much responsibility on its MLRO, who was accountable for the breaches. He has agreed not to apply for a compliance oversight or MLRO role for three years. (Source: FSA/PN/077/2010 and Final Notices)