GTBank Admits To Money Laundering Failure, Loses $9.3 million

The United Kingdom’s Financial Conduct Authority (FCA) revealed on Tuesday that the UK subsidiary of Guaranty Trust Bank (GTBank) has an inadequate money laundering system.

As a result, it fined GTBank £11 million, stating that the money laundering system of the financial institution was weak to protect customers. It found “serious weaknesses” between October 2014 and July 2019.

Prime Business Africa gathered that the £11 million fine was reduced by 30 per cent to $9.3 million by the Financial Conduct Authority after GTBank admitted it failed to beef up its money laundering systems. 

It was learnt that GTBank didn’t take appropriate action to fix its weak money laundering system despite warnings from Financial Conduct Authority, internal and external sources. 

According to the Financial Conduct Authority, GTBank didn’t document the money laundering risks posed by its customers, nor were they assessed. 

“During the relevant period, GT Bank failed to undertake adequate customer risk assessments, often not assessing or documenting the money laundering risks posed by its customers,” the UK authority said. 

Although the Managing Director of GTBank UK, Gbenga Alade, said “We would like to assure all our stakeholders and the general public that necessary steps have been taken to address and resolve the identified gaps,” history doesn’t speak well of the firm.  

It was learnt that GTBank is a repeat offender of money laundering system failure, considering the £11 million is the second and highest fine placed on the firm by the UK authority within 10 years. 

Due to serious and systemic failings related to anti-money laundering controls, the Financial Conduct Authority fined GTBank £525,000 in August 2013.

Meanwhile, Prime Business Africa previously reported that GTBank recorded 15,024 fraud cases, involving N1.21 million in 2021. This was in contrast to the 17,310 fraud cases recorded a year before, involving N1.35 million.