Due to deficiencies in its anti-money laundering systems, Ghana International Bank (GHIB) was fined 5.8 million pounds ($7.1 million) by Britain’s Financial Conduct Authority (FCA).
The FCA claimed the bank gave other lenders correspondent banking services, enabling them to offer goods and payment services they otherwise couldn’t.
The bank did not sufficiently carry out the additional anti-money laundering tests required between January 2012 and December 2016, according to the FCA.
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According to the FCA statement, “No evidence of actual money laundering was detected, though the risk of money laundering, as a result of these deficient systems, was significant.” It added that the bank has not disputed the findings and has agreed to settle early.
GHIB said that since the period of investigation, it has appointed a completely new board and new management, with its anti-money laundering systems significantly strengthened.
“Under new leadership, GHIB is a fundamentally different bank today, with a healthy balance sheet and the support of its major shareholders,” Chief Executive Dean Adansi said in a statement.
The FCA said that GHIB was unable to identify and assess the risks posed by its correspondent bank customers and properly scrutinise transactions worth 9.5 billion pounds processed on their behalf.
The watchdog visited GHIB in December 2016 to review its financial crime controls and, as a result of concerns identified during this visit, the bank voluntarily agreed not to take on new customers.
“This restriction remains in place. GIB continues to work with the FCA and an independent expert to improve its financial crime controls,” the FCA said.
