The British financial watchdog has launched £10million at Banque Havilland SA, a Luxembourg-based private bank, for allegedly creating and distributing a document containing “inappropriate advice” for potential clients. The UK’s Financial Conduct Authority (FCA) has also imposed separate fines on three former employees of the bank’s London branch.
According to FCA, former staff members include Edmund Rowland, David Weller and Vladimir Bolelyy, who are former CEOs, senior managers and employees of the bank’s London branch, respectively. The regulator fined them £352,000, £54,000 and £14,200, respectively. It also banned them from working in financial services in the UK.
FCA’s latest action comes after a warning notice from October 2021 the regulator addressed Banque Havilland SA and “certain persons” previously employed by the private bank for failing to comply with its principles for businesses.
In the notice, the British regulator accused Banque Havilland of being the mastermind of a document which “sets out a number of measures that could be taken to harm the economy of Qatar by using manipulative business practices aimed at create a false or misleading impression”. about the market or the price of Qatari bonds.
FCA alleges scheme to devalue Qatari riyal
In A declaration released on Friday, the FCA noted that it believed Banque Havilland’s objective with the document was to devalue the Qatari riyal and break its peg to the US dollar in order to harm the Middle Eastern country’s economy.
The Financial Markets Supervisor noted that the document was created by Bolelyy on Rowland’s orders and with significant input from Weller. He further noted that Rowland and Bolelyy distributed the document, including providing a copy to a representative of an Abu Dhabi sovereign wealth fund.
“Banque Havilland intended to present the document to representatives of countries that it believes might have reason to want to exert economic pressure on Qatar, including the UAE, as a way to market its services,” explained FCA.
However, the UK watchdog noted that it found no evidence that the strategy mentioned in the document had been executed. He described the strategy as a “manipulative trade” which could have been a criminal offense if practiced in the UK.
“Banque Havilland’s conduct actively encouraged the commission of financial crimes, providing manipulative trading ideas to someone it considered to have the political motivation to be potentially interested in such ideas,” said Therese Chambers. , Executive Director of Market Enforcement and Surveillance at the FCA. “It hardly needs to be said, but such conduct is totally unacceptable.”
However, the regulator pointed out that its decision on the fines had been referred to the Upper Tribunal, a top appeal court in the UK, by Banque Havilland, Rowland and Bolelyy.
Meanwhile, the British watchdog continued its crackdown on cryptocurrency ATMs in the country. It recently took action against such sites in Exeter, Nottingham and Sheffield, expanding its earlier crackdown on such facilities in east London.
The British financial watchdog has launched £10million at Banque Havilland SA, a Luxembourg-based private bank, for allegedly creating and distributing a document containing “inappropriate advice” for potential clients. The UK’s Financial Conduct Authority (FCA) has also imposed separate fines on three former employees of the bank’s London branch.
According to FCA, former staff members include Edmund Rowland, David Weller and Vladimir Bolelyy, who are former CEOs, senior managers and employees of the bank’s London branch, respectively. The regulator fined them £352,000, £54,000 and £14,200, respectively. It also banned them from working in financial services in the UK.
FCA’s latest action comes after a warning notice from October 2021 the regulator addressed Banque Havilland SA and “certain persons” previously employed by the private bank for failing to comply with its principles for businesses.
In the notice, the British regulator accused Banque Havilland of being the mastermind of a document which “sets out a number of measures that could be taken to harm the economy of Qatar by using manipulative business practices aimed at create a false or misleading impression”. about the market or the price of Qatari bonds.
FCA alleges scheme to devalue Qatari riyal
In A declaration released on Friday, the FCA noted that it believed Banque Havilland’s objective with the document was to devalue the Qatari riyal and break its peg to the US dollar in order to harm the Middle Eastern country’s economy.
The Financial Markets Supervisor noted that the document was created by Bolelyy on Rowland’s orders and with significant input from Weller. He further noted that Rowland and Bolelyy distributed the document, including providing a copy to a representative of an Abu Dhabi sovereign wealth fund.
“Banque Havilland intended to present the document to representatives of countries that it believes might have reason to want to exert economic pressure on Qatar, including the UAE, as a way to market its services,” explained FCA.
However, the UK watchdog noted that it found no evidence that the strategy mentioned in the document had been executed. He described the strategy as a “manipulative trade” which could have been a criminal offense if practiced in the UK.
“Banque Havilland’s conduct actively encouraged the commission of financial crimes, providing manipulative trading ideas to someone it considered to have the political motivation to be potentially interested in such ideas,” said Therese Chambers. , Executive Director of Market Enforcement and Surveillance at the FCA. “It hardly needs to be said, but such conduct is totally unacceptable.”
However, the regulator pointed out that its decision on the fines had been referred to the Upper Tribunal, a top appeal court in the UK, by Banque Havilland, Rowland and Bolelyy.
Meanwhile, the British watchdog continued its crackdown on cryptocurrency ATMs in the country. It recently took action against such sites in Exeter, Nottingham and Sheffield, expanding its earlier crackdown on such facilities in east London.