Commerzbank’s UK penalty over money-laundering lapses sets the scene for future enforcement

MLex Market Insight · Commerzbank’s UK penalty over money-laundering lapses sets the scene for future enforcement

Introduction

Date: 26 June 2020. Duration: 13:51.

A penalty of $47 million imposed on German investment bank Commerzbank by the UK’s financial regulator has provided a timely reminder of the risks posed by fraud, as companies and state actors across the globe face increased risks in the wake of the Covid-19 epidemic. The Financial Conduct Authority imposed the fine after repeated missteps in fighting money laundering by the London branch of Commerzbank. And with the likelihood of similar cases arising as a result of inadequate safeguards during the pandemic, the FCA’s response to Commerzbank may set the tone for future enforcement.