January 7, 2016
This notice is being published by the Financial Intelligence Analysis Unit in terms of Article 13A of
the Prevention of Money Laundering Act (Cap. 373) and in accordance with the policies and procedures on the publication of AML/CFT penalties established by the Board of Governors of the Financial Intelligence Analysis Unit.
This notice provides select information from the Financial Intelligence Analysis Unit’s decision imposing the administrative penalty, and is not a reproduction of the actual decision.
DATE OF IMPOSITION OF THE ADMINISTRATIVE PENALTY:
7 January 2016
SUBJECT PERSON:
HSBC BANK MALTA P.L.C. (C3177)
REASONS LEADING TO THE IMPOSITION OF THE ADMINISTRATIVE PENALTY:
Failure to scrutinise adequately on an ongoing basis the transactions undertaken throughout a business relationship in order to ensure that all transactions were consistent with its knowledge of the customer and the business and risk profile.
Failure to take sufficient measures to establish the source of funds of the transactions that were carried out throughout a business relationship established with a politically exposed person. Failure to conduct enhanced ongoing monitoring of a business relationship entered into with a person who is a politically exposed person.
LEGAL PROVISION / GUIDANCE BREACHED:
Regulation 7(1)(d) [as further explained in Regulation 7(2)(a)], Regulation 11(6)(b) and Regulation 11(6)(c) of the Prevention of Money Laundering and Funding of Terrorism Regulations (S.L. 373.01).
TOTAL VALUE OF ADMINISTRATIVE PENALTY:
Forty thousand Euro (€40,000)