FINLAND’S BANKS GET TIGHTER ON CUSTOMER DATA PROTECTION

In recent times, Finnish banks have been taking stringent measures to protect their customers’ data while also complying with regulatory requirements. In this article, we will explore the measures taken by OP Bank to ensure customer data protection and what it means for its customers.

The Importance of Customer Data Protection

Gathering Comprehensive Customer Data

OP Bank emphasizes the importance of gathering detailed customer data as part of its efforts to comply with stringent regulations and protect customers from potential financial risks. The bank requires its customers to provide extensive personal and financial information during their relationship, which is then regularly updated.

Some of the data collected by OP Bank includes:

• Details about a customer’s life situation
• Nature and extent of their operations
• Financial standing
• Use of services
• Nationality
• Country of tax residence
• Source of funds coming into their account

This comprehensive approach enables the bank to offer more tailored solutions for each customer’s unique circumstances.

Regulatory Compliance

Verifying Customer Identity and Maintaining Records

By law, banks must verify a customer’s identity from a reliable source and maintain up-to-date records on their financial standing, operations, use of services, and the purpose of using these services. OP Bank insists that gathering such information is crucial in today’s regulatory environment.

Handling Customer Data Confidentially and Securely

OP Bank emphasizes its commitment to handling all customer data confidentially and securely. However, it warns customers that they should never provide sensitive information such as passwords or personal IDs in response to emails or phone calls claiming to be from OP.

Investigation into Customer Transactions

Regular Checks on Account Transactions

The bank also conducts regular checks on a customer’s account transactions to detect any unusual activity. This includes inquiries about the purpose of international payments and whether OP is the customer’s primary banking institution.

To facilitate these investigations, customers may be required to complete forms detailing their financial activities and provide supporting documentation such as contracts or promissory notes.

Political Exposure and Tax Liability Abroad

Collecting Information on Customer’s Political Exposure Status

OP Bank also collects information on a customer’s political exposure status in Finland or abroad. This includes details about whether they hold an important public function or are related to someone who does. The bank must report this information to prevent potential misuse of public authority.

Additionally, the bank asks customers about their tax liability abroad due to international tax treaties between Finland and other countries. This requires customers to disclose their country of tax residence and any taxation-related information.

Conclusion

In today’s financial landscape, banks are under increasing pressure to maintain robust customer data protection measures. OP Bank’s emphasis on gathering detailed customer data is a testament to its commitment to complying with regulations and safeguarding customer interests. While this may seem invasive at first glance, it ultimately contributes to a safer and more secure banking environment for all customers.