Vocalink Fined by Bank of England for Governance Failures

The Bank of England fined Vocalink Ltd 11.9 million pounds for inadequate risk management and governance. Owned by Mastercard, Vocalink processes most of Britain's payments. The fine was reduced after early admission of faults, although a remediation program was not fully effective by the set deadline.

The Bank of England has imposed an 11.9 million pound fine on payment systems firm Vocalink Ltd for failing to maintain adequate risk management and governance standards. The company, owned by U.S. payment giant Mastercard, plays a critical role in processing bank account-based payment systems across Britain.

According to the Bank of England, this marks the first fine levied against a financial market infrastructure firm. Originally set at 20 million pounds, the fine was reduced after Vocalink admitted to the shortcomings early on and agreed to resolve the issues. Vocalink processes over 90% of salaries, 70% of household bills, and 98% of state benefits in the UK.

A remediation program was implemented after the Bank of England's directive to address the shortcomings. However, Vocalink failed to meet the February 28, 2022 deadline due to ineffective risk management frameworks and weak governance structures. Vocalink has been regulated by the Bank of England as a specified service provider since April 2018. Vocalink has not commented on the situation as of yet.

(With inputs from agencies.)