Bank of Scotland Pays £160,000 Fine After Allowing Payments for Putin Ally
The UK's sanctions watchdog has imposed a hefty fine on Bank of Scotland after the bank allowed payments to pass through its accounts for an ally of Vladimir Putin. The penalty, which stands at £160,000, is being paid by the bank as a result of it opening a current account in the name of Dmitrii Ovsiannikov, a Russian national who has been sanctioned by both the UK and EU over his involvement with the Ukrainian government.
Ovsiannikov's account with Bank of Scotland, part of Halifax, was opened on February 6, 2023, after he used his new UK passport to apply for a bank account. The passport contained a spelling variation of Ovsiannikov's name that had not been flagged by the bank's automatic sanctions screening system.
The bank's failure to identify Ovsiannikov as a sanctioned individual led to payments of £77,383 passing through the account between February 24 and March 10, 2023. However, the bank acted swiftly to report the breaches to the Office of Financial Sanctions Implementation (OFSI), which has now reduced the fine by 50% due to its voluntary disclosure.
The OFSI's decision comes as part of a broader effort to crack down on individuals who attempt to circumvent sanctions imposed on Russia and its allies. Ovsiannikov, who was the first person to be prosecuted for breaching UK sanctions last year, has been linked to senior positions in the Russian government and is accused of compromising Ukraine's territorial integrity.
Bank of Scotland has maintained that it takes its regulatory responsibilities "extremely seriously" and has strengthened its controls to prevent similar incidents from occurring in the future. However, the fine imposed by the OFSI serves as a reminder of the bank's failure to comply with sanctions regulations, highlighting the need for vigilance and cooperation between banks and regulators.
The UK's sanctions watchdog has imposed a hefty fine on Bank of Scotland after the bank allowed payments to pass through its accounts for an ally of Vladimir Putin. The penalty, which stands at £160,000, is being paid by the bank as a result of it opening a current account in the name of Dmitrii Ovsiannikov, a Russian national who has been sanctioned by both the UK and EU over his involvement with the Ukrainian government.
Ovsiannikov's account with Bank of Scotland, part of Halifax, was opened on February 6, 2023, after he used his new UK passport to apply for a bank account. The passport contained a spelling variation of Ovsiannikov's name that had not been flagged by the bank's automatic sanctions screening system.
The bank's failure to identify Ovsiannikov as a sanctioned individual led to payments of £77,383 passing through the account between February 24 and March 10, 2023. However, the bank acted swiftly to report the breaches to the Office of Financial Sanctions Implementation (OFSI), which has now reduced the fine by 50% due to its voluntary disclosure.
The OFSI's decision comes as part of a broader effort to crack down on individuals who attempt to circumvent sanctions imposed on Russia and its allies. Ovsiannikov, who was the first person to be prosecuted for breaching UK sanctions last year, has been linked to senior positions in the Russian government and is accused of compromising Ukraine's territorial integrity.
Bank of Scotland has maintained that it takes its regulatory responsibilities "extremely seriously" and has strengthened its controls to prevent similar incidents from occurring in the future. However, the fine imposed by the OFSI serves as a reminder of the bank's failure to comply with sanctions regulations, highlighting the need for vigilance and cooperation between banks and regulators.
It's like they're trying to send a message or something. I don't get why Bank of Scotland didn't even bother to check Ovsiannikov's name properly, I guess they were having an off day or something. But come on, how could you let £77k just walk out the door without noticing? 
It's like they're just a bunch of sleepyheads who can't be bothered to do their job. And now they've got to pay for it, which is good I guess? 
The OFSI's decision to cut the fine in half though, that's pretty reasonable, I suppose. But still, £80k is a big chunk of change and it could have gone towards so much more. It just feels like these banks are so caught up in their own stuff sometimes... 
. Bank of Scotland gets off scot-free with just £80k fine? That's a slap on the wrist considering how much damage could've been done if they'd allowed more payments to go through Ovsiannikov's account. I mean, think about it, that's over a million pounds that could've gone straight into Putin's pockets 
. It's just not good enough, you know? They need to be held accountable for their mistakes.
. If only they'd taken the time to manually check his passport, this whole ordeal could've been avoided. But no, they let their guard down and now they're facing the music.
. The fine is too lenient, plain and simple. It's a weak punishment for a bank that should know better.
I mean, can you believe they actually allowed payments to go through without checking? It's like they were trying to help Putin's buddy out, you know? 
And now they're paying a fine for it, which is good I guess, but also kinda...weak. I think the bank should have known better, especially since they've strengthened their controls after this whole thing went down. It's all about being vigilant and following the rules, you feel? 
It's not like it was a tiny mistake, either - £77k in payments! That's a lot of money, and they're just brushing it off as a "voluntary disclosure"? 
This is getting crazy... £160,000 fine seems like peanuts compared to what's at stake here 
And now that Ovsiannikov is "linked" to the Russian government, does that mean there's more to this story than meets the eye? 
I'm not saying it's a conspiracy, but... have you ever noticed how "coincidentally", sanctions get lifted or relaxed whenever a certain someone's interests are involved? 
. I mean, come on £160k? You'd think that kind of money would be enough to teach them a lesson! But nope, they still managed to mess it up and now the OFSI has to step in. And what really grinds my gears is that this guy's account was opened because he used a passport with a " variation" of his name 
!
gotta give them points for being transparent about what went wrong and making changes to prevent it from happening again 
hopefully more banks follow their lead 
In this case, the bank should've been keeping an eye on Ovsiannikov's account way closer. I get that mistakes happen, but £77k in payments is a lot! You can't just take it lying down and hope someone else will clean up after you. Banks gotta be more proactive, like when your friend asks for a favor, you gotta say yes or no, not "sure" 
.
they got fined £160k for letting payments go through for some Russian dude 
who's buddies with Putin 
. I mean, what's up with that?! 
They must've had some major security lapse or something 
. I'm all about protecting sanctions and keeping our friends safe 
. Can't believe they didn't catch it sooner, but at least they reported it to the right people 
. Banks gotta be on top of these things, you know? 
. Banks need to be more careful with their customers' money and the rules that govern it. It's not just about following the law, it's about being responsible and trustworthy 
. Sanctions are meant to be taken seriously, especially when it comes to countries like Russia with, well, let's just say complicated relationships 
And to think the bank has strengthened its controls now? 