Finanstilsynet inspection report for Merex International A/S

Report on inspection in Merex International A / S (the laundry area)

In November 2018, the Danish FSA was inspecting Merex International A / S. The inspection was a study of the money laundering area as part of the ongoing supervision of the company. The inspection included the company’s compliance with the Money Laundering Act’s rules on customer knowledge procedures, as well as investigation, listing and notification obligations. 

Risk assessment and summary

The company is authorized for currency exchange pursuant to section 41 of the Money Laundering Act. The company offers currency exchange to private customers and corporate customers. 

In addition, the company has a limited license to offer payment services (money transfer business) pursuant to section 37 (1). 1, no. 2, of Act No. 652 of June 8, 2017 on payments, and the company is a money transfer agent for Western Union.

 

In the company, besides the owner himself two people are employed full time and two part time. The company receives both cash and card payments.

 

The Danish FSA considers that the company’s inherent risk of being abused for money laundering or terrorist financing is high. The Danish Financial Supervisory Authority’s assessment is based on the assessment of the inherent risk associated with currency exchange activities.

 

Based on the inspection, there are a number of areas that give rise to supervisory reactions.

 

The company is instructed to ensure that in all cases where a business relationship is concluded, sufficient information is provided on the purpose and nature of the customer relationship and that the company relates to the information. 

 

The company is instructed to ensure that all established business contacts are monitored. 

 

The company is instructed to ensure that sufficient customer knowledge procedures are carried out for all customers and that this can be demonstrated to the Danish FSA.  

 

In addition, the company is instructed to ensure that surveys of unusual transactions are recorded and documented.

 

Finally, the company is instructed to notify the Money Laundering Secretariat of the Public Prosecutor for Special Economic and International Crime (SØIK) of all complex and exceptionally large transactions, as well as all unusual transaction 

Link:

Finanstilsynet Notice

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