BoI fined €550,000 in laundering probe

BANK of Ireland has been hit with a €550,000 fine by Britain’s financial regulator for failing to spot suspected money laundering by a customer in Scotland.

The Financial Service Authority (FSA) severely criticised the bank for failing to detect the breaches on a number of occasions and said it was concerned that the customer involved was laundering money for either a criminal or terrorist organisation. Police in Britain are currently investigating the customer.

Financial regulators around the world have been tightening regulations since the September 11, 2001 attacks to keep banks from being used to finance terrorism. Royal Bank of Scotland Group Plc in Britain and Riggs Bank NA in the US are among lenders that have been fined for failing to comply with money laundering rules.