UK Regulator Takes Enforcement Action Against Firms For Failing To Be Open And Cooperative - Finance and Banking

UK: UK Regulator Takes Enforcement Action Against Firms For Failing To Be Open And Cooperative

On February 9, 2017, the PRA fined The Bank of Tokyo Mitsubishi UFJ Ltd and MUFG Securities EMEA plc for failing to be open and cooperative with the PRA about an enforcement action into BTMU by the New York Department of Financial Services. The DFS had investigated BTMU regarding possible breaches of US sanctions laws about which a settlement was reached in 2014.

BTMU was fined by the PRA for breaching Fundamental Rules 6 and 7 of the PRA Rulebook in that it failed to communicate relevant information about its settlement with the DFS which meant that the UK regulatory implications were not adequately considered and that its reporting responsibilities to the PRA could not be met; BTMU also failed to inform the PRA of relevant information relating to the DFS matter. MUS was fined for breaching Fundamental Rule 7 because it failed to inform the PRA of the potential implications of the DFS matter for a senior MUS individual, which meant that the PRA could not consider whether the circumstances did or might impact that individual's fitness and propriety.

BTMU and MUS were fined Ł17,850,000 and Ł8,925,000 respectively, both figures incorporating a 30% discount, pursuant to the PRA Settlement Policy, which the firms qualified for because they agreed to settle at an early stage of the PRA's investigation.

The final notice is available at: http://www.bankofengland.co.uk/pra/Documents/supervision/enforcementnotices/en090217.pdf ; and the DFS content order is available at: http://www.dfs.ny.gov/about/ea/ea141118.pdf?_sm_au_=iVVJrnv0FsrVhsvV .

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