United Bank for Africa (UBA) has explained the $15 million fine imposed on it by the United States for breaking money laundering laws.

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The U.S. Office of the Comptroller of the Currency (OCC) and the Financial Crime Enforcement Network (FinCEN) had on April 27 announced a $15 million fine against the New York branch of UBA for violating the U.S. Bank Secrecy Act (BSA), as related to money laundering.

However, a statement issued in Lagos on Tuesday by UBA Director of Corporate Communications, Celine Loader, said the contravention predated the bank's merger, and its current management and board.

The statement recalled that "upon assumption of office, the current management of the bank in 2005 self-reported noted weaknesses and committed to their speedy resolution in co-operation with the U.S. authorities.

"In January 2007, the OCC issued a Consent Order that detailed the internal controls needed to strengthen the branch's anti-money laundering programme, and further upgrade its transaction monitoring and BSA risk assessment methodologies.

"The bank has since then committed enormous resources to implement these controls in line with market and regulatory requirements."

However, UBA stressed that during a spot examination in November last year, the OCC determined that the measures taken were not sufficient, which resulted in a revised consent order and fine.

The OCC regards the geography with which the branch deals (Africa) as high risk, thereby warranting enhanced due diligence on it, the statement added.

It confirmed that the $15 million fine has been paid, and expressed confidence that this will not have effect on the UBA Group performance and the profit forecast for the financial year 2008.

UBA said it is holding talks with reputed consulting firms, and has implemented an enhanced BSA programme to strengthen the controls of its branches as well as the Group.

"UBA and its management team are fully committed to complying with all applicable laws and regulations, and to conducting its operations in accordance with the expectations of the banking supervisions in all the countries in which it operates."