The U.K. Financial Conduct Authority fined Canara Bank £896,100 for failing to maintain adequate anti-money laundering systems, while also imposing a restriction that prevents the Indian lender from accepting deposits from new customers for 147 days.
The FCA said Canara Bank failed to remedy shortcomings that were identified in its anti-money laundering systems and controls between Nov. 26, 2012, and Jan. 29, 2016. The failures were systemic and had an impact on all levels of the lender's business and governance structure, including senior management, according to the FCA.
The British regulator noted that Canara Bank fully cooperated with its investigation and qualified for a 30% discount on agreeing to resolve the case. The deficiencies in the bank's systems have also been rectified, the FCA added.
Canara Bank operates in the U.K. through Canara Bank UK Branch.
