The Financial Conduct Authority (FCA) of Britain said on Monday that ADM Investor Services International Limited, a commodities services broker, had been fined 6.47 million pounds ($7.88 million) for having “inadequate” anti-money laundering systems and controls.
The FCA said that due to the company’s global operations and clientele, which included higher risk “politically exposed persons,” the nature of its business and clientele constituted potentially high levels of money laundering risk.
The watchdog claimed it raised concerns with ADM in 2014, but when it returned to the business two years later, it discovered rules that still reference laws that had been abolished and no firm-wide money laundering risk assessment.
At the corporation, a division of the Chicago-based food and agricultural conglomerate Archer-Daniels-Midland Co (ADM.N), the need for corrective action was withdrawn in January 2018.
“Due to ADM Investor Services’ mistakes, financial crime may be committed using it as a conduit. Therese Chambers, joint executive director of enforcement and market oversight at the FCA, stated that these shortcomings persisted even after the business had been given unambiguous warnings about upgrading its systems.
ADM, which facilitates approximately 180 million derivatives contracts annually through services in the energy, base metals, foreign exchange, and cocoa markets, did not immediately respond to a request for comment. ADM qualified for a 30% discount on the punishment, which was reduced from 9.2 million pounds, according to the FCA, which stated that ADM did not contest the FCA’s conclusions.
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