According to the regulator, the firm, which provides services for speculative trading, did not carry out thorough assessments of its exposure to financial crime between September 2006 and November 2008.
Alpari was found to have failed to have adequate customer screening processes in place at the account opening stage while not expanding anti-money laundering functions in line with its growing customer-base.
Sudipto Chattopadhyay, Alpariâs ex-money laundering reporting officer, also received a fine of Â£14,000.
Margaret Cole, director of enforcement at the FSA, said: âThe FSA ... expects expanding businesses to commit sufficient resource to their compliance and anti-money laundering functions.â
âAlpari failed to operate and maintain adequate money laundering systems and controls, leaving it open to the risk of financial crime.â
âThese penalties serve as a reminder of the importance of maintaining effective anti-money laundering controls - something we have repeatedly stressed,â she explained.
Both the firm and its ex-employee qualified for a 20 per cent discount after they agreed to cooperate with the FSA as part of the investigation.
By Jim Ottewill