Guernsey regulator slaps £2M fine on Utmost for decade-long AML failures
The Guernsey Financial Services Commission (GFSC) has fined Utmost Worldwide Limited £1,960,000 for long-standing anti-money laundering failures. The penalties follow a decade of systemic weaknesses in oversight, risk assessment, and due diligence processes.
Two senior employees also faced personal sanctions: CEO Leon Steyn was fined £35,000, while Deputy Money Laundering Reporting Officer James Watchorn received a £10,000 penalty and a 17-month ban from similar roles.
The investigation revealed that Utmost Worldwide Limited failed to properly assess financial crime risks tied to unregulated international brokers and high-risk jurisdictions. Instead of proactive monitoring, the firm relied on 'trigger events' to review high-risk accounts. This approach left gaps in oversight, with around 1,900 client files containing fraudulent due diligence documents—200 of which remained unresolved for ten years.
Leon Steyn, the company's CEO, was found to have neglected his duty to ensure adequate controls. James Watchorn, the Deputy Money Laundering Reporting Officer, downplayed red flags, further weakening compliance. Both individuals, along with the firm, cooperated fully with the investigation and settled early. In response to the 2023 fine, Utmost Worldwide Limited has since strengthened its processes. Measures include stricter due diligence for international broker partnerships, termination of high-risk unregulated entities, and mandatory compliance training. These changes were outlined in the firm's 2024 regulatory update and audited compliance report. The GFSC described this as its largest financial penalty since 2017, issued in line with recommendations from MONEYVAL, the Council of Europe's anti-money laundering body.
The penalties mark the end of a lengthy investigation into Utmost Worldwide Limited's compliance failures. The firm must now adhere to stricter monitoring and reporting rules, while the two sanctioned employees face financial and professional consequences. The GFSC's decision reinforces the need for stronger anti-money laundering controls in Guernsey's financial sector.
