The Financial Services Authority (FSA) has fined a senior manager of Sindicatum Holdings, the financial advisory and asset management firm, nearly £20,000 for failing to have adequate anti-money laundering controls in place.

Michael Wheelhouse, a board member and money laundering reporting officer at Sindicatum, was fined £17,500 today, and the firm was fined £49,000.

It is the first time that the FSA has fined a compliance officer.

While the financial industry watchdog found no evidence of money laundering at Sindicatum, which was set up by former Nomura and JP Morgan bankers, it identified failings around the verification of clients' identities.

It said the firm did not implement adequate procedures for checking or recording the identity of its clients, and that Mr Wheelhouse personally "failed to take reasonable steps to implement adequate procedures for controlling money laundering risk".

William Amos, head of retail enforcement at the FSA, said: "It is vital to the integrity of the UK's financial markets that regulated firms are not used by criminals to launder money."

He placed responsibility for implementing and following procedures in accordance with FSA rules on this issue with senior management.

"This fine is a warning to firms and individuals about the importance of complying with our rules in this area and we will not hesitate to clamp down on failures, where necessary," he said.

Simon Morris, of CMS McKenna, the law firm, said the fine on Mr Wheelhouse was "a very significant development."

"When the failure is that of an individual, the FSA is signalling it will act against him and not a firm's directors", he said.

"Anyone who takes on the role of a governance or anti-money laundering officer should be aware they are at peril unless they ensure proper anti-money laundering measures are in place."

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