Santander United Kingdom and others, including Guaranty Trust Bank (a subsidiary of Nigeria’s GTCO), have incurred fines totaling $222.16 million (£178 million) between June 2022 and June 2023, an indication that the financial regulatory landscape in the country is becoming increasingly tighter.
Of these fines, Santander UK accounted for the largest portion, with $133.73 million, representing approximately 60 percent of the cumulative penalties according to data by FinBold.
TSB Bank followed with the second-highest fine, amounting to $36.91 million. Citigroup Global Markets Limited ranked third, with fines totaling $15.57 million. The fourth-highest penalties were attributed to Metro Bank, amounting to $12.41 million, while Guaranty Trust Bank (a subsidiary of Nigeria’s GTB) ranked fifth with fines totaling $9.52 million.
Other banks that incurred high fines include; Ghana International Bank ($7.23 million), Al Rayan Bank ($4.99 million), and Gatehouse Bank ($1.97 million).
The banking sector in the UK is subjected to accelerated enforcement actions and within a year, these regulatory measures have resulted in banks facing astronomical fines, reflecting the magnitude of the penalties imposed.
The FinBold report highlighted the implications and nature of the fines affecting the UK banking sector.
According to the research report, “The fines shed light on the extent of the penalties imposed, underscoring the pressing need for enhanced compliance and ethical practices within the banking industry”.
The report noted that numerous instances of enforcement actions have shared a common thread, citing the occurrence of comparable circumstances where an institution becomes aware of its shortcomings or flaws but falls short of rectifying them sufficiently.
Overall, Finbold notes that regulatory enforcement is likely to become more assertive, with banking firms being pushed to evaluate the strength of their compliance programs and policies to avoid enforcement action.
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