Local tech firm fined over £260,000 in settlement with FSC for anti-money laundering breaches

A local technology firm will have to pay over £260,000 after entering into a settlement with the Financial Services Commission over breaches of anti-money laundering requirements.

The settlement stems from a routine on-site inspection of Badger Technology Company Ltd in April last year, during which the company disclosed a substantial backlog of internal suspicious activity reports. 

Following further investigation, the firm acknowledged that between April 2021 and December 2022, it did not comply with internal procedures for suspicious activity reporting. These failures constitute a breach of the Proceeds of Crime Act 2015.

In response to the findings, the company has implemented a series of remedial actions, including appointing a new Head of Compliance, and three new Directors.

The Financial Services Commission noted that the regulatory process was collaborative and that the company demonstrated a constructive and cooperative approach throughout the investigation.

As a result of the breach, the Badger Technology has agreed to pay a financial penalty of £263,822. The original fine of £376,888 was reduced by 30% in recognition of the early settlement and cooperation.

The FSC continues to stress the importance of robust AML systems and controls, particularly in the fast-evolving field of distributed ledger technology.