Bank of Scotland Fined £160,000 for Breaching UK Sanctions on Putin Ally
The Office of Financial Sanctions Implementation (OFSI) has imposed a hefty fine of £160,000 on Bank of Scotland for its role in facilitating payments to a senior Russian official with ties to Vladimir Putin. The bank's error allowed the individual, identified as Dmitrii Ovsiannikov, to open and process transactions through an account at Halifax, despite being subject to UK sanctions.
Ovsiannikov, who has been designated under EU sanctions for his work in Ukraine, had made 24 payments totalling £77,383 to or from a personal current account between February 2023. His actions were considered a serious breach of UK regulations, as he was able to use his UK passport with a slightly misspelled name to bypass the bank's automatic screening system.
The bank was initially unaware of Ovsiannikov's status when he opened the account in February 2023, but it later identified him as a "politically exposed person" on February 24th. Despite not immediately reporting the breach, Bank of Scotland promptly referred the matter to OFSI and cooperated with the investigation.
The fine has been reduced by 50% due to the bank's swift disclosure of the issue, which was recognized by the regulator. The company has acknowledged its responsibility for the mistake, stating that it takes its regulatory obligations "extremely seriously" and has taken steps to strengthen its controls to prevent similar incidents in the future.
The incident highlights the ongoing challenges posed by complex sanctions regimes and the importance of vigilance among financial institutions. While the bank's cooperation with OFSI helped mitigate the severity of the penalty, the fine serves as a reminder that even well-intentioned mistakes can have serious consequences when it comes to complying with regulatory requirements.
The Office of Financial Sanctions Implementation (OFSI) has imposed a hefty fine of £160,000 on Bank of Scotland for its role in facilitating payments to a senior Russian official with ties to Vladimir Putin. The bank's error allowed the individual, identified as Dmitrii Ovsiannikov, to open and process transactions through an account at Halifax, despite being subject to UK sanctions.
Ovsiannikov, who has been designated under EU sanctions for his work in Ukraine, had made 24 payments totalling £77,383 to or from a personal current account between February 2023. His actions were considered a serious breach of UK regulations, as he was able to use his UK passport with a slightly misspelled name to bypass the bank's automatic screening system.
The bank was initially unaware of Ovsiannikov's status when he opened the account in February 2023, but it later identified him as a "politically exposed person" on February 24th. Despite not immediately reporting the breach, Bank of Scotland promptly referred the matter to OFSI and cooperated with the investigation.
The fine has been reduced by 50% due to the bank's swift disclosure of the issue, which was recognized by the regulator. The company has acknowledged its responsibility for the mistake, stating that it takes its regulatory obligations "extremely seriously" and has taken steps to strengthen its controls to prevent similar incidents in the future.
The incident highlights the ongoing challenges posed by complex sanctions regimes and the importance of vigilance among financial institutions. While the bank's cooperation with OFSI helped mitigate the severity of the penalty, the fine serves as a reminder that even well-intentioned mistakes can have serious consequences when it comes to complying with regulatory requirements.
i think this should be a lesson 2 all banks & financial instituons 2 be extra careful wif sanctions & make sure their systems r tight so nothin like dis happens agen 
... one mistake & u r £160k poorer 
. dont need a fine 2 tell us that 
.
I mean, come on, a slightly misspelled name? That's not exactly rocket science! 
And what really gets me is that the bank was able to process 24 payments without noticing anything wrong. Like, how do you mess up on something as basic as sanctions screening? 
Anyway, props to the bank for owning up to their mistake and cooperating with the regulator. Maybe they'll use this as a learning experience... 
. And 50% off due to their quick response? That feels like a nice slap on the wrist instead of a proper punishment 
. Still, at least they're acknowledging their mistake and taking steps to fix it... fingers crossed that's actually what happens 
.
I'm not surprised about this. I mean, think about all the little things we do every day and how they can add up. Like me, for example, trying to make my own cleaning products at home - sometimes I mess something up 
and it takes a while to figure out what went wrong. But Bank of Scotland's mistake is on a whole different level... £160k fine? That's just crazy 
.
You see, banks might think they're doing everything right, but the truth is, one little slip-up can blow up into something big 
. The key takeaway here is that mistakes happen, but it's how we respond to 'em that matters 
. So, let this be a lesson to us all: attention to detail is key, and transparency is everything 
.
and taken this situation way more seriously.
. And then to get a 50% reduction in fines? That's still £80k, btw 
. Don't mess with sanctions, UK banks! 
and helped OFSI investigate what went wrong 
. Banks got to deal with way more complicated stuff than just one tiny slip-up...
their mistake was pretty obvious but still had to pay the price... I mean i get it they didn't intentionally do anything wrong but still gotta follow the rules, right? 
I'm kinda glad they took responsibility and cooperated with OFSI tho, that shows they're not trying to hide anything 
. That being said, at least Bank of Scotland owned up to their mistake and cooperated with OFSI 
.
I'm starting to wonder if some people would actually try to take advantage of these sanctions and not get caught. 
. It's a great lesson for us all - when we own our mistakes, we can turn them into opportunities for growth 
It's all just too convenient for me...
... and how stunning the views are, but also how crazy it gets when you try to navigate those tiny roads 
. Like, I was there once and got lost for like an hour, just driving around in circles... finally had to stop at a pub and ask for directions 
. Anyway, back to the bank fine - yeah, 160k is a big chunk of change