Ireland has fined UBS AG's life insurance subsidiary for violating a regulation of 2010, intending to prevent money laundering law and the financing of terrorism.
The Central Bank of Ireland fined EUR65,000 and alleged that UBS had not mentioned essential controls after the law was passed in 2010 or properly instruct its directors.
The Central Bank of Ireland head of the enforcement directorate Peter Oakes was quoted by Financial Times as saying that this is a serious issue to the bank and the bank wants boards of directors to pay attention.
"We have identified many instances where firms do not appear to have comprehensively reviewed their business models to assess the impact of the 2010 [law] on their businesses nor devised or deployed effective implementation plans," Oakes said.
Expressing the views on the capital punishment, UBS said, "All control weaknesses identified by the CBI have been remediated."
"BSIL is a licensed entity operating according to and abiding to the rules and regulations set out by the Irish authorities. The anti-money laundering standards that UBS Group applies across its entire organization are among the strictest worldwide."
Ireland’s central bank has sanctioned 50 financial companies resulting in €18.5m in fines and nine disqualifications for various other violations, since June 2006.
As per the data revealed by UBS, Ireland is the base land for life assurance products aimed at wealthy clients, wrote €688m in gross premiums last year, and was among Ireland’s top 10 insurers in the most recent rankings from the central bank.