FSA said that the failings at Coutts were serious, systemic and were allowed to persist for almost three years.
During the watchdog’s visit to Coutts in October 2010, it identified that the company did not have controls when initiating relationships with high risk customers, and did not consistently monitor these high risk relationships.
Additionally, FSA also found that the AML team at Coutts failed to provide an appropriate level of scrutiny and challenge.
FSA acting director of enforcement and financial crime Tracey McDermott said that Coutts’ failings were significant, widespread and unacceptable.
"Its conduct fell well below the standards we expect and the size of the financial penalty demonstrates how seriously we view its failures," McDermott said.
