Mirror mirror on the wall, which bank is the baddest of them all? Banks must wash their hands because regulators are after them for money laundering allegations. The Central Bank of the UAE (CBUAE) has imposed sanctions on a mysterious financial institution under money laundering and financial terrorism allegations. But, CBUAE is not alone — other regulators around the world are also tightening their reins on financial institutions.
NatWest (NWG) has been fined £264.8m by the Financial Conduct Authority after it failed to comply with money laundering regulations. JPMorgan Chase & Co (JPM) was chased by the US Securities and Exchange Commission to pay nearly $200m for monitoring employee communications.
Hang on… there’s more! The French regulator also held UBS (UBSG.S) guilty of promoting illegal banking services and money laundering. After all these hefty fines, these banks are definitely not "fine"!
Why it matters
Institutions are at risk of losing their precious reputation if accused of these allegations. Banks have a lesson to learn here — especially when trust is an essential part of many of their customer acquisition strategies!
