Proactive Investors - Banco Santander (BME:SAN) was refunded millions of pounds by accountancy Ernst & Young over the latter's poor work addressing the bank’s financial crime safeguards.
EY was among a host of advisors called in to address substandard financial crime and anti-money laundering systems at the bank, but parted ways with Santander after failing to help, according to Financial Times sources.
EY’s project “went badly wrong over an extended period,” sources said, prompting the accountant to reimburse Santander with around £15 million.
Santander’s UK arm had been hit with a £108 million fine in December last year over issues with its anti-money laundering controls between 2012 and 2017.
Issues at Santander had “created a prolonged and severe risk of money laundering and financial crime,” the Financial Conduct Authority said at the time.
The subsequent fine dented the bank’s 2022 financial results, the Financial Times sources added, with EY’s refund equivalent to the pay of roughly 19 of its UK partners for the year to June 2022.