28 Feb 2019
The United Kingdom’s sanctions enforcer levied a £5,000 monetary penalty against London-based Raphaels Bank, marking the first time the agency has imposed a fine since its creation in 2016.
The Office of Financial Sanctions Implementation (OFSI) imposed the penalty for an unspecified violation of an Egyptian asset freezing order involving a £200 transaction. The penalty was issued under the new Policing and Crime Act 2017.
The bank dealt with funds linked to a blacklisted individual and then disclosed the violation “when it became aware a breach of financial sanctions had taken place,” OFSI said. The agency ultimately reduced what would have been a £10,000 penalty by 50 percent in light of Raphaels Banks’ cooperation.
“OFSI imposed the monetary penalty because it was satisfied, on the balance of probabilities, that Raphaels Bank breached a prohibition that is imposed by or under financial sanctions legislation, and knew, or had reasonable cause to suspect, that they were in breach of the prohibition,” the agency said.
OFSI, which is part of HM Treasury, added that enquiries into other aspects of the breach that do not involve the bank remain ongoing.
“A fuller summary of this breach may be published following the conclusion of these enquiries,” the agency said.
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