Despite the well-known requirements under the Anti-Money Laundering (AML) Act, it seems that some financial institutions are still finding it a challenge to comply with these requirements. After several warnings to remedy deficiencies, BaFin is now increasingly moving towards imposing fines.
Just a few days ago, a fine of 150,000 euros was imposed on a well-known institution. Shortly before that, in July and August of this year, enforcement measures were imposed or, in one case, extended against two other banks and a district savings bank. In all cases, the measures were based on deficiencies in risk management and non-compliance with due diligence requirements.
The signals sent by the fines emphasize the urgency of having reliable AML and KYC processes in place. In the future, BaFin can be expected to increase rather than decrease its control and sanctioning pressure.
To be on the safe side, the implementation of a powerful automated solution is essential. This is the only way to ensure that suspected cases of fraud and money laundering can be identified reliably and checked efficiently at reasonable cost.
If you have any questions about efficient risk management processes or cleversoft Forensics’ AML/KYC solutions, please feel free to contact us.