NEWS: Banque Havilland’s fine over Qatar bonds presentation cut by UK tribunal - AML Intelligence

LUXEMBOURG-based Banque Havilland has lost an appeal against sanctions by Britain’s financial watchdog over an alleged plot to devalue Qatar’s currency, though a tribunal cut its fine to £4 million ($5.5 million) from £10 million.

The Financial Conduct Authority said in 2023 that it had decided to fine Banque Havilland £10 million for a presentation by the bank involving a plan to weaken the riyal during a regional blockade.

The FCA alleged Banque Havilland – which has since changed its name to Rangecourt – created the presentation as a means of marketing itself to Abu Dhabi sovereign wealth fund Mubadala Investment Company.

The presentation was devised amid tensions between Gulf states that began in 2017 when Saudi Arabia, the United Arab Emirates, Bahrain and Egypt imposed an economic boycott on Qatar, accusing it of supporting Islamist militants and Iran.

Banque Havilland said it never intended to execute any of the transactions in the leaked presentation, which its lawyers say was hacked and then leaked.

The bank referred the FCA’s proposed fine to London’s Upper Tribunal, arguing that the conduct of its staff – including former London branch CEO Edmund Rowland – could not be attributed to the bank.

The Upper Tribunal rejected that argument, saying Banque Havilland’s regulatory breaches were serious and “encouraged the commission of financial crime and market misconduct”. But the tribunal said a fine of 4 million pounds was appropriate.

Rowland’s proposed £352,000 fine and financial services industry ban was upheld by the tribunal.

Steve Smart, executive director of enforcement and market oversight at the FCA, welcomed the ruling and said the bank had been “motivated by greed”.