DNB’s Crusade Against Financial Crime: Preventing Money Laundering, Corruption, and International Sanctions Violations in Norway

DNB, Norway’s largest financial services provider, has committed to leading the charge against financial crime. The bank focuses on preventing money laundering, terrorist financing, corruption, and breaches of international sanctions. These illicit activities pose a severe threat to society and undermine trust in healthy and sustainable business operations.

DNB’s Three-Pronged Defense

1. First line of defense: DNB’s daily operations and front-line staff are responsible for maintaining good internal controls and identifying potential risks. With direct contact with customers and extensive business knowledge, they can detect and report suspicious transactions and activities.
2. Second line of defense: Risk Management and Compliance functions monitor and control DNB’s managers and employees. These independent control functions diligently maintain compliance with rules and regulations.
3. Third line of defense: Group Audit ensures the board that all internal control elements, including risk management and compliance, meet satisfactory standards.

Preventive Measures

To effectively prevent financial crimes, DNB implements the following measures:

• Know Your Customers, Partners, and Suppliers: Understanding business relationships enables DNB to detect and prevent illicit activities.
• Transaction Monitoring: All transactions are screened using an electronic system to flag and investigate suspicious activities.
• Risk Assessments: DNB meticulously assesses inherent and residual risks, focusing on money laundering and terrorist financing, corruption, and international sanctions.
• Procedures and Processes: DNB maintains robust procedures and processes to ensure compliance with regulations.
• Customer Due Diligence: Background checks and ongoing due diligence are conducted on customers to meet strict requirements.
• Training: Regular employee training raises awareness and equips them to recognize and respond to potential financial crimes.
• Monitoring: Continuous monitoring and evaluation of risk levels and regulatory requirements is essential.

Money Laundering and Counter-Terrorist Financing

Money laundering involves integrating criminally acquired funds into the legal economy, while terrorist financing supports terrorist activities. The Norwegian Anti-Money Laundering Act requires financial institutions, including DNB, to implement measures to uncover and prevent these illicit activities.

Corruption

Corruption, involving the offer, giving, and acceptance of an undue advantage, threatens DNB’s integrity and society as a whole. DNB and its employees bear criminal responsibility for corrupt activities. The bank counters corruption by emphasizing transparency, educating employees, and maintaining a zero-tolerance policy.

International Sanctions

Sanctions are non-military actions targeting individuals, entities, and countries to further foreign and security policy objectives. As a global financial institution, DNB faces significant exposure to international sanctions through its diverse network of customers, transactions, and business partners. DNB rigorously screens customers and transactions against sanctions lists and keeps up-to-date with the relevant rules and legislation to maintain compliance.