Statement of inspection in Coop Bank A / S (money laundering area)
Statement of inspection in Coop Bank A / S (money laundering area)
In December 2018, the Danish FSA was on inspection at Coop Bank A / S. The inspection was an investigation of the money laundering area as part of the ongoing supervision of the bank. The inspection included the bank’s risk assessment, policies, procedures and internal controls, as well as customer knowledge procedures, including customer monitoring.
Risk assessment and summary
Risk assessment and summary
The bank offers simple lending products and accounts for handling ordinary everyday finances, including payment cards for natural persons with a Danish CPR number who are resident in Denmark and who are registered as members of Coop. The bank also offers, to a lesser extent, basic deposit and payment accounts to customers residing abroad. In addition, the bank offers Coop consumer loans to non-members .
The bank is internet based and has no branches. Coop members can deposit amounts to their accounts in Coop’s physical stores to a limited extent. The Bank does not offer products to companies, companies, associations or other legal entities.
The Danish FSA considers that the bank’s inherent risk of being abused for money laundering or terrorist financing is normal to high assessed in relation to the average of financial companies in Denmark. The assessment emphasizes that although the bank only offers simple financial products and primarily has private customers residing in Denmark, the bank’s customer portfolio consists exclusively of distance customers and the bank offers a number of different financial products.
Based on the inspection, there are two areas that give rise to supervisory reactions.
The Danish Financial Supervisory Authority found that in its risk assessment, the bank does not adequately identify and assess the inherent risk that the bank may be used for money laundering or terrorist financing. This is particularly true of the risk that the bank may be abused for terrorist financing. The bank is therefore instructed to revise its risk assessment.
Finally, the bank is instructed to revise its money laundering policy so that it clearly identifies and defines what business the bank will carry out, given that the bank must be able to effectively prevent money laundering and terrorist financing.
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