Britain's financial regulator said today it had fined Abbey National, the country's second-biggest mortgage bank, £2.3 million for failing to have adequate checks on money laundering.
"The failure by Abbey National to monitor compliance with FSA Money Laundering Rules demonstrated a marked lack of regard for its regulatory obligations," Financial Services Authority (FSA) Director Mr Andrew Procter said in a statement. An Abbey spokesman said the bank had brought in new controls and systems and taken effective action to address the issue.
The fine comes as the FSA looks to improve its reputation after British politicians criticised the watchdog for being soft on financial market abuses.
For Abbey, the regulator's punishment has arrived as it tries to fight back from a dramatic earnings slump after an ill-fated move into corporate banking.
Abbey shares closed at 535-3/4 pence yesterday.