Financial Conduct Authority
FCA issues Final Notice to former CEO for anti-money laundering failings
The Financial Conduct Authority has publicly censured Mohammad Ataur Rahman Prodhan, the former Chief Executive Officer of Sonali Bank (UK) Limited (SBUK) for anti-money laundering (AML) failings.
Mr Prodhan was the senior manager at SBUK with responsibility for the establishment and maintenance of effective AML systems and controls.
Between 7 June 2012 and 4 March 2014, Mr Prodhan failed to take reasonable steps to assess and mitigate the AML risks arising from a culture of non-compliance among SBUK’s staff. He failed to ensure that there was a clear allocation of responsibilities to oversee SBUK’s branches, and he also failed to properly oversee, manage, and resource SBUK’s Money Laundering Reporting Officer (MLRO) function.
As a result of these failings, SBUK’s staff did not appreciate the need to comply with AML requirements, and the MLRO function was ineffective in monitoring their compliance. This led to systemic failures in SBUK’s AML systems and controls throughout the business.
The FCA initially decided to impose a financial penalty of £76,400 on Mr Prodhan in May 2018. Mr Prodhan referred the case to the Upper Tribunal, where proceedings have been delayed significantly as a result of the pandemic and limitations on Mr Prodhan’s ability to travel to the UK from Bangladesh, where he now resides.
While the FCA considers the financial penalty to be appropriate, there now exist exceptional circumstances for the case to be resolved by agreement, including the lack of any prospect of enforcing payment of a financial penalty.
Mr Prodhan has withdrawn his referral to the Upper Tribunal and agreed to accept a public censure.
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, recently said:
“Mr Prodhan failed to maintain proper anti-money laundering systems and allowed a culture of non-compliance among the bank’s staff.
“While a financial penalty was appropriate in this case, prolonged litigation to enforce a penalty that is unlikely to be paid against a person who may not be able to travel to the UK to explain himself in person to the Upper Tribunal is neither practical nor fair. In these exceptional circumstances, a public censure is an appropriate resolution of the case.”
In line with its three-year strategy, the FCA continues its work to prevent the potential for harm to consumers and the market. The regulator has been clear that firms doing business in the UK must meet its high standards.
Notes to Editors
- Read the Final Notice (PDF)
- Sonali Bank UK Ltd Final Notice (PDF)
- Steven Smith Final Notice (PDF)
- The FCA has concluded that it is appropriate to replace the financial penalty with a public censure because of exceptional circumstances in this case. These include Mr Prodhan returning to Bangladesh and no longer having income or assets in the UK; the fact he is no longer in employment in Bangladesh; ongoing personal conditions which limit his ability to travel to the UK for the Upper Tribunal; and the length of time since his misconduct which has been impacted by Covid-delays to the litigation.
- In August 2022, following regulatory action by the Prudential Regulation Authority, SBUK cancelled its authorisation and renamed itself Sonali Bangladesh (UK) Ltd
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this, it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA.
Latest News from
Financial Conduct Authority
Mohammed Zina sentenced to 22 months in prison for insider dealing and fraud16/02/2024 16:20:00
Following a sentencing hearing at Southwark Crown Court, Mohammed Zina, 35, was today sentenced to 22 months in prison for insider dealing and fraud.
Convicted illegal money lender imprisoned for failing to pay confiscation order16/02/2024 15:25:00
Illegal money lender, Dharam Prakash Gopee (70), has been sentenced to almost 8 years in prison for failing to pay a confiscation order.
Mohammed Zina found guilty of insider dealing and fraud15/02/2024 16:15:00
Mr Mohammed Zina was today found guilty of six offences of insider dealing and three offences of fraud following a 12-week trial at Southwark Crown Court brought by the Financial Conduct Authority (FCA).
Financial watchdog stops thousands of misleading ads and promotions14/02/2024 15:05:00
Over 10,000 financial adverts and other promotions were withdrawn or changed in 2023 following intervention from the Financial Conduct Authority (FCA), an increase of 17%, year-on-year.
Four men under investigation on suspicion of multiple offences14/02/2024 14:05:00
The FCA and National Crime Agency (NCA) conducted a major operation to arrest 3 London based individuals.
FCA bans and fines Floris Jakobus Huisamen over London Capital & Finance plc financial promotions13/02/2024 11:10:00
The FCA has fined a former director of London Capital & Finance plc (LCF) £31,800 and banned him from working in financial services.
GAP insurers agree to suspend sales following FCA concerns over fair value09/02/2024 16:10:00
The Financial Conduct Authority (FCA) has today announced that multiple insurance firms have agreed to pause sales of Guaranteed Asset Protection (GAP) insurance, following a request from the FCA.
Individual charged with fraud over unauthorised investment scheme23/01/2024 14:15:00
The Financial Conduct Authority (FCA) has launched criminal proceedings against Guy Flintham for committing fraud by false representation and for carrying out regulated activity without authorisation.
Duty calls: Future-proofing finance for everyone03/01/2024 13:20:00
Now into the second year of its 3-year strategy, the FCA has outlined some key achievements and milestones from the last 12 months, including the game changing introduction of the Consumer Duty, which came into force on 31 July 2023.