Financial Crime World

Title: Norway’s Largest Bank Faces Hefty Fine for Money Laundering Lapses: A Compliance Reminder

Norway’s Financial Supervisory Authority (Finanstilsynet) Imposes Significant Fine on DNB ASA

  • The Financial Supervisory Authority of Norway (Finanstilsynet) has fined DNB ASA, the country’s largest financial services group, 400 million Norwegian krone (approximately US $48.1 million) for breaches of Norway’s Anti-Money Laundering (AML) Act.
  • These violations stem from inadequate AML policies and procedures within the bank.

Initial and Subsequent Investigations Reveal Serious Breaches of the Law

  • The initial investigation into DNB’s AML policies and procedures uncovered significant breaches.
  • A subsequent investigation into DNB’s handling of customer accounts for Samherji, an Icelandic fisheries company, revealed similar issues.
  • However, several time-barred money laundering violations and those that occurred under Norway’s old money laundering law could not be penalized.

DNB’s Response to the Fine

  • DNB acknowledged that “its anti-money laundering efforts had not given sufficient results at the time of the inspection.”
  • Since then, the firm has made improvements, focusing on elements like risk assessment and classification and electronic monitoring.
  • DNB also stated that it is no longer under investigation in the wider Samherji case.

Global Trend of Heightened Scrutiny on Money Laundering and the Importance of AML Compliance

  • This penalty adds to the growing global trend of increased scrutiny on money laundering.
  • In recent years, numerous penalties have been imposed on financial institutions for money laundering lapses.
  • Instances like DNB serve as reminders of the importance of maintaining robust AML compliance.

Quote from a Financial Crime Specialist at Rahman Ravelli

This is yet another high-profile reminder of the need for institutions to prioritize compliance with money laundering regulations. – Nicola Sharp, a financial crime specialist at Rahman Ravelli

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