British Regulator Fines PaineWebber

Britain’s financial regulator imposed a $510,000 fine on PaineWebber International Ltd. for lacking proper controls to prevent money laundering.

The Securities and Futures Authority said it found no instances of money laundering but still felt compelled to “severely reprimand” the brokerage firm for exposing itself and its customers to risk. The fine was the second-largest imposed by the agency.

The investigation covered the period from Jan. 1, 1998, to Dec. 15, 1999, before the company was acquired by Switzerland’s UBS in November.

UBS said it agreed to the fine and it was “pleased to have the matter concluded.”

The British regulator accused PaineWebber U.K. of failing to maintain adequate accounting procedures, and failing to obtain and record sufficient records of customer details. PaineWebber also was reprimanded for failing to adequately train and supervise staff in anti-money laundering procedures.

The Securities and Futures Authority said it did take into account that “no customer harm” was done and that the firm cooperated with the investigation.