FCA places embattled Metro Bank on financial crime watchlist as rescue deal continues
Metro Bank has landed on the Financial Conduct Authority’s (FCA) financial crime watchlist, revealed in documents scoping out its plans for survival.
Metro Bank on FCA’s financial crime watchlist
The bank says that it “received confirmation of its position on the FCA’s watchlist for financial crime compliance” on 6 June, and that the action related to the “ongoing management of financial crime risk” within its back book and online account provisions.
As part of this, the regulator is expected to instate monitors to test the effectiveness of its financial crime controls and report back on progress.
“The group continues to engage, update and co-operate fully with the FCA on these matters and the FCA’s enquiries remain ongoing,” Metro says.
Its position was revealed last week via the release of a 217-page dossier outlining a rescue deal compiled by Morgan Stanley and Moelis for the bank after its shares fell by over 20% last month.
The refinancing deal hands 52.88% of the shares to Spaldy Investments – which is owned by Colombian billionaire Jaime Gilinski Bacal – making it the controlling shareholder in exchange for leading a $396.5 million capital raise with its $126 million investment. Royal Bank of Canada, the bank’s corporate broker, is also involved in the rescue.
The deal also includes $725 million in debt financing, and is expected to be voted upon by existing shareholders on 27 November.
However, the document also makes clear that the Bank of England could instate alterative measures if it did not endorse the plan.
Metro did not return FinTech Futures‘ request for comment.
