The UK's financial watchdog has fined the London branch of Germany’s Commerzbank £37.8 million for failing to have proper controls for preventing money laundering.
“Commerzbank London was aware of these weaknesses and failed to take reasonable and effective steps to fix them despite the FCA raising specific concerns about them in 2012, 2015 and 2017,” the FCA said in a statement.
The German bank agreed to make significant changes and were given a 30% discount on the fine, which would have been £54 million without co-operating with authorities.
Commerzbank said in a statement: "Commerzbank has cooperated fully with the Financial Conduct Authority (FCA) to mitigate any potential compliance risks promptly and appropriately. The FCA investigation found no actual financial crime.
"The Bank has successfully remediated and addressed the deficiencies that were the subject of the investigation. During this period of remediation, Commerzbank has implemented new and enhanced anti-money laundering systems, processes and controls.
"The Bank has taken the findings of the regulator very seriously. Commerzbank London has therefore undertaken a significant remediation exercise. Commerzbank is committed to ensuring that our business fully complies with the regulatory requirements. This has the highest priority at the Bank."
