FSA acts with police on money laundering concerns

Carol Sergeant, Managing Director at FSA, says:

"The FSA is working closely with the Police and other law enforcement agencies to fight money laundering. In this case we have joined forces with the Northern Ireland Police Service. All financial firms must play their part and follow the FSAs rules on identifying, reporting and preventing money laundering. Where we identify shortcomings we will not hesitate to take appropriate action."

The FSA is helping the Economic Crime Bureau of the Police Service of Northern Ireland with its investigations into suspicions that NIIBL and its directors have become involved in financial crime. The police investigation, which is still in its early stages, has already identified funds of approximately 8 million which appear to have been laundered through the firm. The police expect that their investigation will eventually lead to criminal charges being made. In co-operating with the Police Service of Northern Ireland, a member of FSA staff accompanied police officers during a search of NIIBLs offices, and the FSA has used its expertise to identify suspicious files.

FSA has taken this action because the firm has:

• actively assisted clients in using false addresses in their investment dealings with product providers, the address being either owned or controlled by NIIBL. The firm also certified in correspondence with product providers that the address of the client was correct; and

• handled client money and client assets, in excess of 1.2 million, without appropriate authorisation.

Any consumers who have dealt with this firm will be covered by the Financial Services Compensation Scheme and the Financial Ombudsman Service. Consumers who have any concerns should contact the FSAs Consumer Helpline on 0845 606 1234.

Notes for editors

1. Northern Ireland Insurance Brokers Limited was authorised by the FSA to undertake investment activities with effect from 30 November 2001 (N2). The firm had previously been a member of the Personal Investment Authority (PIA) and the Insurance Brokers Registration Council (IBRC).

2. The firm has been ordered to cease conducting the following regulated activities:

   "(1) arranging deals in investments;

   (2) making arrangements with a view to transactions in investments;

   (3) advising on investments; and

   (4) agreeing to carry on a regulated activity. "

3. The FSAs money laundering rules, which came into effect on 1 December 2001, require all regulated firms to have effective anti-money laundering systems and controls in order to reduce the opportunity for them to be used for financial crime.

4. The FSAs money laundering rules are supported by guidance from the Joint Money Laundering Steering Group a forum of trade associations which provides guidance to its members on how to comply with the FSAs Rules and the Money Laundering Regulations 1993.

5. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection of consumers; and fighting financial crime.

6. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.