FSA found shortcomings in Danske Bank’s activities
On 21 March 2016, the Danish Finanstilsynet published a report on the results of the inspection carried out in the Danske Bank Group regarding the implementation of money laundering and terrorist financing prevention measures. The omissions found in the Danske Bank Group during the inspection are highlighted in the report.
In order to guarantee the coordinated activities of the Danish and Estonian financial supervision authorities, protection of the interests of the subjects’ customers and the general public and the uniform communication of information to them, the Finantsinspektsioon of Estonia decided to publish a comment on the supervision proceedings carried out in Danske Bank A/S Estonia branch.
Kilvar Kessler, Chairman of Estonia’s Finantsinspektsioon:
„Banks are the first line of defence to make sure financial crime does not pay. We at Finantsinspektsioon are committed to stand for transparent and orderly functioning financial markets. Thus, we need financial intermediaries with well-functioning organizations supporting highest standards of integrity.”
As from mid-2014, Finantsinspektsioon of Estonia carried out a thorough on-site inspection of the implementation of money laundering and terrorist financing prevention measures at Danske Bank A/S Estonia branch. As a result of this, Finantsinspektsioon ordered Danske Bank A/S Estonia branch on 15 July 2015 to make good identified breaches and make its activities comply with the Credit Institutions Act and the Money Laundering and Terrorist Financing Prevention Act.
Finantsinspektsioon also required the credit institution to amend its rules of procedures, appropriately identify the purpose and nature of the business relationships established with customers, implement adequate measures in monitoring the activities of customers and guarantee appropriate compliance with all other money laundering and terrorist financing prevention obligations.
Estonia’s Finantsinspektsioon informed the Danish Finanstilsynet about intention to carry out on-site inspection, results of the inspection, and the fact that order was issued, which, as Finantsinspektsioon understood, was valuable input for Finanstilsynet broader work with the bank and group, which was completed now in 2016.