Financial Crime World

365.bank Faces €2 Million Fine for Suspected Bank Fraud in Slovakia: Police vs. Bank’s Defense

In a heated dispute between Slovakian authorities and 365. bank, the financial institution is facing a €2 million fine imposed by the police due to alleged lapses in anti-money laundering and terrorist financing protocols.

The Investigation

The fine stems from cashless and cash transactions totaling millions of euros that the police claim the bank failed to scrutinize effectively. The transactions, which were both large and of an unusual nature, raised red flags among investigators. Additionally, the police argue that in some instances, the amounts transferred were disproportionate to the nature of the business activity or the declared assets of the clients.

365.bank’s Defense

The bank asserts that the intricacies and constant evolution of anti-money laundering legislation make it a challenging field for financial institutions. They claim that they must assess transactions in real-time based on available data, unlike the police who can investigate retrospectively.

Similarities with ČSOB Bank

The police have also pointed to ČSOB bank, which received a similar €1.5 million fine in 2021 due to similar misgivings. During the investigated period from 2016 to 2019, more than €500 million reportedly flowed through the bank to Asian countries, Turkey, Belarus, and the United Arab Emirates. Clients from abroad reportedly established accounts with the bank to forward funds to sanctioned nations.

The Bank’s Response

  1. bank’s defense team remains adamant about the complexity of the matter and their commitment to adhering to regulatory requirements. They emphasize their focus on improving their processes going forward.

The legal proceedings are expected to be closely watched in Slovakia’s financial sector. It remains to be seen whether 365. bank will successfully challenge the fine or if they will need to pay the penalty.

Key Points

    1. bank faces a €2 million fine for suspected bank fraud
  • The police claim that the bank failed to scrutinize transactions effectively
  • The bank argues that anti-money laundering legislation is complex and challenging to comply with in real-time
  • ČSOB bank received a similar fine in 2021 due to similar misgivings
  • The legal proceedings are expected to be closely watched in Slovakia’s financial sector