The Financial Conduct Authority (FCA) has announced imposing a £2,038,700 fine on The TJM Partnership Limited (in liquidation). The penalty was imposed on the firm for failing to ensure it had effective controls to reduce the risk of financial crime and money laundering in its business.
According to the press release, this the largest fine the regulator has imposed so far in a cum-ex trading related case.
The FCA found that TJM did not have adequate procedures in place to mitigate the risk of fraudulent activities or apply anti-money laundering policies when trading on behalf of clients of the Solo Group. These events took place between January 2014 and November 2015.
The regulator further observed circular pattern of purported trades during this period in thet trading executed by TJM on behalf of the Solo Group’s clients. According to the FCA, these patterns are suggestive of financial crime. Moreover, the trading appears to have allowed the arranging of withholding tax reclaims in Denmark and Belgium.