Metro Bank in Britain has acknowledged being placed on the Financial Conduct Authority's (FCA) "watchlist" in relation to financial crime. The revelation is part of a prospectus presented to shareholders to garner support for a rescue deal. Metro Bank received confirmation of its inclusion on the FCA watchlist for financial crime compliance on June 6.
The FCA is specifically scrutinizing the management of financial crime within the bank's existing customer base and expressing concerns about the effectiveness of financial controls over the group's online account provisions.
Companies on the FCA watchlist are subjected to "enhanced supervision," requiring them to address regulators' concerns. While being on the watchlist does not automatically imply financial repercussions for Metro Bank, the institution stated that it continues to engage, update, and cooperate with the FCA. The bank had previously disclosed in its annual report in March that the FCA was conducting inquiries into its financial crime systems, indicating a longstanding investigation.
This disclosure is part of the bank's 217-page prospectus seeking shareholder support for a £935 billion rescue deal. If approved, this deal would elevate the stake of Colombian billionaire Jaime Gilinski from 9% to 52.9%, granting him the ability to nominate three non-executive members to join the board. The prospectus, a mandatory document for such fundraising efforts, warns that if the proposed rescue plan is not approved, the Bank of England could impose an alternative strategy.
By fLEXI tEAM