Stockbroker that is closing up shop fined €280,000 by Central Bank
A stockbroker which is in the process of winding down has been fined €280,000 for failing to meet its obligations under anti-money laundering laws.
The Central Bank fine on Campbell O’Connor, which is closing down after almost 60 years in business, was reduced to €280,00 from €400,000 after it admitted to the breaches and co-operated with the regulator from an early stage.
It was the first action taken against a stockbroker under the Criminal Justice Act which polices anti-money laundering and anti-terrorist financing procedures, the Central Bank said.
The firm’s anti-money laundering procedures were not fit for purpose and the breaches occurred for over six years to November 2016, the regulator said.
The breaches included failings on risk assessment over money laundering-terrorist financing; failings to monitor customer transactions; and failures to train staff on suspicious transactions.
“This is the first enforcement action taken against a stockbroker for breaches of the CJA (Criminal Justice Act) 2010, and is a timely reminder to the wider financial services sector that [anti-money laundering and terrorist financing] compliance is, and will remain, a key priority for the Central Bank,” said Seána Cunningham, the director of enforcement and anti-money laundering.
The Central Bank said the laws are designed “to protect the integrity of the Irish financial services sector”.
Meanwhile, London stockmarket-listed firm Brewin Dolphin confirmed it plans to buy out the wealth management business from Investec Ireland for €44m as part of preparations for Brexit.
About 52 of the staff who work for Investec Ireland will switch to Brewin Dolphin and Investec Ireland will continue to run offices in Dublin and Cork.
“The Investec wealth management business in the Republic of Ireland is independent of other wealth management businesses in the Investec group and hence its sale will not impact the wealth management offering in other jurisdictions,” Investec said.
