Fine first for money laundering activities

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Investment Services UK, an emerging market bond broker, has been fined £175,000 by the Financial Services Authority (FSA) because it broke anti-money laundering (AML) rules in failing to implement proper systems and controls.

The company’s managing director Ram Melwani has furthermore been fined £30,000, and become the first approved person to be hit with such a fine. The FSA says he “failed to act with due care, skill and diligence, failed to ensure his firm complied with AML requirements and was knowingly concerned in the actions taken by ISUK.” According to the FSA, ISUK’s clients are “corporate vehicles” incorporated in offshore jurisdictions with AML regulations more lax than those in the UK. In helping clients set up accounts with a particular bank to take part in bond trades, the company failed to prov...

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