Santander terminates the contract with EY: inadequacy in the work of controlling financial crime, despite stratospheric remunerations
EY has agreed to terminate a consultancy contract and repay millions of pounds to Santander's UK branch following shortcomings in its financial crime auditing for the bank, the Financial Times reported.
The consultancy firm, part of the “Big Four”, was one of several external consultants that Santander had used in an attempt to solve the problem of financial crimes and the fallacy of its anti-money laundering system which had attracted the attention of regulators English.
The quality of the work carried out by EY was so poor that the professional services giant was forced this year to offer the bank a refund of around £15m for the failed project.
The work, code-named “Project Morgan”, “went badly for a long period” and the financing deal dented results of the consultancy firm's UK financial services division for the latest financial year ending in June, a company said. of people.
It is unclear whether the work was brought in-house by Santander or outsourced to another company.
The amount reimbursed to Santander is equivalent to the annual remuneration of around 19 EY partners in the UK, each of whom was paid an average of £803,000 in the 12 months to June 2022, or €922,000 in current exchange, in the year before the breach of contract. Congratulations to the company and, above all, to the consultants who, certainly, were able to get paid well.
The failure of the project was followed by the prospect of cuts to EY's financial crime consultancy team in the UK.
Dozens of members of the 150-strong division are set to be made redundant as part of a reduction in EY's UK financial advice workforce, revealed by the Financial Times last month. The fight against crime in the UK is unlikely to be profoundly affected.
EY is one of the four sisters of auditing, together with Pwc, KPMG and Deloitte. In December, Britain's Financial Conduct Authority fined Santander £108 million, one of the largest anti-money laundering fines, for failings between 2012 and 2017.
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The article Santander terminates the contract with EY: inadequacy in the work of controlling financial crime, despite the stratospheric remunerations comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/santander-rescinde-il-contratto-con-ey-inadeguatezza-nel-lavoro-di-controllo-sul-crimine-finanziario-nonostante-le-remunerazioni-stratosferiche/ on Tue, 26 Sep 2023 12:09:38 +0000.