Private bank fined for lax anti-fraud controls

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A private bank has been fined 350,000 by the Financial Services Authority (FSA) after weaknesses in its systems and controls allowed a senior employee to transfer 1.4m out of clients' accounts without permission. Matt Henkes reports.

In the first case where a private bank has been fined for anti-fraud weaknesses, the FSA found that BNP Paribas Private Bank (BNPP) did not have an effective review process for large transactions from clients' accounts.

The 13 fraudulent transfers were made between February 2002 and March 2005 using forged signatures and falsified change of address forms, it said.

"BNPP Private Bank's failures exposed clients' accounts to the risk of fraud," said Margaret Cole, FSA director of enforcement.

"This is unacceptable particularly with the overall increase in awar...

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