London - Coutts today announced that it has reached a settlement with the Financial Services Authority (FSA) following an investigation into Coutts & Co’s anti-money laundering (AML) systems and controls in relation to high risk clients. The fine relates to historic activity undertaken between December 2007 and November 2010. Coutts has agreed to pay a fine of £8.75 million as part of the settlement with the FSA.
Coutts has cooperated fully and openly with the FSA throughout the investigation. Coutts accepts the findings contained in the FSA's Final Notice regarding certain failures to meet the relevant regulatory standards between December 2007 and November 2010. Coutts has found no evidence that money laundering took place during that time.
Since concerns were first identified by the FSA, Coutts & Co has enhanced its client relationship management process which included a review of its AML procedures. As a result of that review, the FSA notes that a number of improvements and recommendations have already been implemented. We are confident that our processes in this area are now robust.
Rory Tapner, Chief Executive of the Wealth division of Royal Bank of Scotland, said: “We are disappointed that Coutts & Co did not meet the FSA’s standards with regard to establishing and maintaining effective AML controls in relation to high risk clients. Since the FSA first raised its concerns, we have implemented a number of improvements to prevent any recurrence of these failings. Regulatory reforms continue apace. We remain committed to ensuring that our systems and controls are robust and counter the risk of financial crime in all the markets in which we operate.”
For further information please contact:
Susan Tether, Corporate Communications, Coutts on 020 7957 2605 or email : Susan.Tether@coutts.com
Caroline Wells, Corporate Communications, Coutts on 020 7753 1749 or email : Caroline.Wells@coutts.com
Nick Gill, Corporate Communications, Coutts on 020 7957 2427 or email : Nick.Gill@coutts.com
Notes to Editors
Coutts is the Wealth division of Royal Bank of Scotland Group. Coutts serves clients from over 40 offices across the world offering tailored wealth management, banking, trust and tax services. Coutts is headquartered at 440 Strand, London with offices in other key international financial centres in Zurich, Geneva, Hong Kong, Singapore and Dubai. The division includes Adam & Company providing private banking services from its base in Edinburgh and RBS International based in the Channel Islands which provides offshore banking.