Gatehouse Bank Cops For £1.5m Fine From The FCA

Latest update from the FCA;

The Financial Conduct Authority (FCA) has fined Shariah compliant Gatehouse Bank Plc £1,584,100 for significant weakness in its financial crime systems and controls.

Between June 2014 and July 2017 Gatehouse failed to conduct sufficient checks on its customers based in countries with a higher risk of money laundering and terrorist financing. Gatehouse also failed to undertake the correct checks when some of the customers were classed as Politically Exposed Persons (PEPs).

In one instance, Gatehouse Bank set up an account for a company based in Kuwait to aggregate customer funds. Gatehouse Bank did not require the company to collect information about customers’ source of funds or wealth, which was required under Gatehouse’s anti-money laundering policies. As a result, over a two-year period, Gatehouse accepted US$62,000,000 into the account without properly vetting the funds for financial crime risks. This example illustrates the risks of failing to have proper systems and controls.

Gatehouse has subsequently taken significant steps to improve its financial crime systems and controls.

Mark Steward, Executive Director of Enforcement and Market Oversight, commented:

‘Gatehouse Bank’s failures exposed itself to the risk that it might be used as part of a laundering process for illegal funds. While not deliberate, there can be no excuse for failures as serious as this. The FCA will continue to hold firms to account for poor anti-money laundering systems and controls.’


Gatehouse promotes itself as a socially responsible, fair and transparent bank and allocates capital towards sustainable projects, according to statements on its website. Active in the BTL market, it achieved healthy profits in 2021 of around £3.6m. It received a Moody’s rating of baa3 earlier in 2022, with Moody’s noting; “Moody’s has no particular governance concerns in relation to Gatehouse Bank.”

About alastair walker 12093 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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