Norwegian Authorities Impose Record-Breaking Fine on DNB for Money Laundering Lapses

DNB ASA, the largest financial services group in Norway, has been hit with a record-breaking fine of 400 million Norwegian krone (US $48.1 million) by the Norwegian Financial Supervisory Authority (Finanstilsynet) for breaches in anti-money laundering (AML) regulations.

Serious Breaches of Anti-Money Laundering Regulations

The announcement follows an extensive inspection of DNB’s AML policies and procedures, revealing several serious breaches of the Norwegian Anti-Money Laundering Act. A parallel investigation into DNB’s handling of Samherji, an Icelandic fisheries company’s customer accounts, uncovered many of the same issues.

::: warning The large number of money laundering violation identified were either time-barred or related to the older Norwegian money laundering law, and penalties could not be enforced for those incidents. :::

However, the fine imposed solely covers the violations of the current law.

DNB’s Response and Current State

DNB acknowledged its AML practices had fallen short during the inspection and required improvement. Since then, efforts have been made to bolster DNB’s AML program, with a focus on:

• Risk assessment
• Classification
• Electronic monitoring

DNB also clarified it was no longer under investigation as part of the larger Samherji investigation.

Global Scrutiny on Money Laundering

The fine levied against DNB is another noticeable indicator of the growing global scrutiny on money laundering. In recent years, penalties for such lapses have become increasingly common, with several leading financial institutions and companies bearing the brunt of these fines.

The incident is a stark reminder for all financial organizations to prioritize and ensure compliance with AML regulations to avoid similar penalties.