FCA Opts for Public Censure of Sonali Bank UK ex-CEO for AML Failure PlatoBlockchain Data Intelligence. Vertical Search. Ai.

FCA Opts for Public Censure of Sonali Bank UK ex-CEO for AML Failure

The United Kingdom Financial Conduct
Authority (FCA) has publicly censured Mohammad Prodhan, the former Chief
Executive Officer of Sonali Bank UK (SBUK), for failing to establish
and maintain effective anti-money laundering (AML) systems and controls at the bank.

The financial markets regulator, which fined Prodhan £76,400 in
2018
, is now opting to several disapprove the
ex-CEO as a result of “exceptional circumstances in this case.”

These situations include “Mr Prodhan returning to
Bangladesh and no longer having income or assets in the UK; the fact he is no
longer in employment in Bangladesh; ongoing personal conditions which limit his
ability to travel to the UK for the Upper Tribunal; and the length of time
since his misconduct which has been impacted by Covid-delays to the
litigation,” FCA explained in a statement released on
Friday.

Furthermore, the financial watchdog noted
the Bank of England’s Prudential Regulation Authority has canceled the bank’s
authorization. The institution has also been renamed to Sonali Bangladesh (UK) Limited, it said.

SBUK was founded in 2001 to serve the
Bangladeshi community in the United Kingdom. The bank is the product of a
partnership between the Bangladesh government and Sonali Bank, a state-owned
commercial bank in Bangladesh.

Prodhan’s Offence

In 2018, the FCA penalized Prodhan for
failing to take charge of his AML duties at the SBUK, leading to “systemic
failures in SBUK’s AML systems and controls throughout the business.” However,
the CEO referred the case to the Upper Tribunal, a UK superior appellate court,
where the case was delayed.

“While a financial penalty was appropriate
in this case, 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 in person to the Upper Tribunal is neither practical nor fair,” noted Mark Steward, Executive Director of Enforcement and Market
Oversight at the FCA. “In these
exceptional circumstances, a public censure is an appropriate resolution of the
case,” Steward added.

Meanwhile, in 2016, Bangladesh appointed
Pradhan as the Managing Director of Rupali
Bank, a state-owned commercial bank. In 2019, the executive was also selected as the MD of Sonali Bank in Bangladesh.
However, FCA in the latest statement said Prodhan is no longer in employment in
Bangladesh.

The United Kingdom Financial Conduct
Authority (FCA) has publicly censured Mohammad Prodhan, the former Chief
Executive Officer of Sonali Bank UK (SBUK), for failing to establish
and maintain effective anti-money laundering (AML) systems and controls at the bank.

The financial markets regulator, which fined Prodhan £76,400 in
2018
, is now opting to several disapprove the
ex-CEO as a result of “exceptional circumstances in this case.”

These situations include “Mr Prodhan returning to
Bangladesh and no longer having income or assets in the UK; the fact he is no
longer in employment in Bangladesh; ongoing personal conditions which limit his
ability to travel to the UK for the Upper Tribunal; and the length of time
since his misconduct which has been impacted by Covid-delays to the
litigation,” FCA explained in a statement released on
Friday.

Furthermore, the financial watchdog noted
the Bank of England’s Prudential Regulation Authority has canceled the bank’s
authorization. The institution has also been renamed to Sonali Bangladesh (UK) Limited, it said.

SBUK was founded in 2001 to serve the
Bangladeshi community in the United Kingdom. The bank is the product of a
partnership between the Bangladesh government and Sonali Bank, a state-owned
commercial bank in Bangladesh.

Prodhan’s Offence

In 2018, the FCA penalized Prodhan for
failing to take charge of his AML duties at the SBUK, leading to “systemic
failures in SBUK’s AML systems and controls throughout the business.” However,
the CEO referred the case to the Upper Tribunal, a UK superior appellate court,
where the case was delayed.

“While a financial penalty was appropriate
in this case, 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 in person to the Upper Tribunal is neither practical nor fair,” noted Mark Steward, Executive Director of Enforcement and Market
Oversight at the FCA. “In these
exceptional circumstances, a public censure is an appropriate resolution of the
case,” Steward added.

Meanwhile, in 2016, Bangladesh appointed
Pradhan as the Managing Director of Rupali
Bank, a state-owned commercial bank. In 2019, the executive was also selected as the MD of Sonali Bank in Bangladesh.
However, FCA in the latest statement said Prodhan is no longer in employment in
Bangladesh.

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  • Source: https://www.financemagnates.com//fintech/fca-opts-for-public-censure-for-sonali-bank-uk-ex-ceos-aml-failure/

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