The UK’s Financial Conduct Authority has levied its first fine since its inception three weeks ago – a £4.2m penalty on a private bank for having "systemic” failures in anti-money laundering procedures and controls.

The regulator, which replaced the Financial Services Authority on April 1, criticised EFG Private Bank, the UK private banking arm of Switzerland-based EFG International, for keeping insufficient information to show that it had assessed the risks of holding accounts that had high risks of being used for money laundering.