What was long regarded as a minor issue for Nordic banks, money laundering has become a serious area of concern in the last two years following scandals at competitors Danske Bank and Swedbank.

Norway’s Financial Watchdog – FSA (Financial Supervisory Authority) has found some major shortcomings in DNB’s compliance with Anti-Money Laundering rules during a late-2018 inspection. Although DNB had made improvements since an earlier review in 2016, but still had significant shortcomings and had taken too long to start to rectify earlier problems.

The FSA issued a statement saying, “The company’s overall follow-up and coordination of AML has not been satisfactory.” The FSA found shortcomings in risk assessments, monitoring of electronic transactions and in documentation of measures taken by DNB. It is not clear if any penalties would be levied on the bank. Earlier this year, DNB’s commercial real estate brokerage unit Naeringsmegling AS was fined 30,000 euros by the FSA following an on-site inspection of the company’s compliance with the anti-money laundering regulations.

DNB, Nordic region’s biggest bank by market value, has issued a statement that they take work against money laundering very seriously and would continue to work on the compliance issues. Managing Director of DNB Naeringsmegling Anne Helene Mortensen had recently said “In the last six months we have introduced a number of measures aimed at strengthening the anti-money laundering efforts of the company and have put in place specific measures to address the issues.”

FSA also uncovered problems with DNB’s Private Banking unit and has said that a separate inspection would be launched shortly.

 

Date: 22 August 2019

Argus Global specializes in regulatory compliance. We can help you determine if your company is up to date with the latest regulations with compliance reviews, and we offer as well ongoing support for all your compliance needs.

 

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