The UK authorities have fined the Bank of Scotland £160,000 for breaching financial sanctions linked to Russia.
The Office of Financial Sanctions Implementation (OFSI), which enforces sanctions on behalf of the UK government, said the bank processed 24 payments in February 2023 worth about £77,000. The transactions involved a personal account held by an individual sanctioned by the UK.
OFSI said the payments broke rules that prohibit dealing with, or making funds available to, designated persons under the UK’s Russia sanctions regime. The Bank of Scotland is part of Lloyds Banking Group.
The watchdog noted that Lloyds voluntarily reported the breach in March 2023. Because of this self-reporting and cooperation, the final penalty was reduced by 50%.
In a statement, a Lloyds Banking Group spokesperson said the bank had acted quickly and openly after identifying the issue. The spokesperson described the breach as a “one-off, isolated matter” and said it was proactively referred to OFSI.
The group added that it has since strengthened its internal controls to ensure it continues to meet high standards of risk management, compliance and governance.
OFSI said the fine highlights the importance of robust systems to prevent sanctioned individuals from accessing financial services, particularly under strict measures introduced following Russia’s invasion of Ukraine.
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