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Finanstilsynet inspection: Handelsbanken

Statement on inspection in Handelsbanken, branch of Svenska Handelsbanken AB (publ), Sweden (money laundering area)

In March 2019, the Danish FSA was on inspection in Handelsbanken, a branch of Svenska Handelsbanken AB (hereafter the branch).

The inspection was an investigation of the money laundering area as part of the ongoing supervision of the branch. The inspection included the branch’s risk assessment, policies, procedures and internal controls, as well as customer knowledge procedures, including private and corporate customer monitoring.

Risk assessment and summary

Handelsbanken is a Danish branch of Svenska Handelsbanken AB, a Swedish credit institution, which at the end of 2018 was the fifth largest bank in Denmark and on a group basis among the largest in the Nordic region.

The branch focuses on having full customers, both private and corporate customers, and for this reason the branch has only a small proportion of customers who purchase only one single product. 
 
The Danish FSA considers that the branch’s inherent risk of being abused for money laundering or terrorist financing is normal to high when compared to the average of financial companies in Denmark. In the assessment, the Danish FSA has placed particular emphasis on the fact that the branch has many customers and that it offers a number of different financial products for use by both private and corporate customers.  

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

The branch is required to revise its risk assessment, as the branch’s risk assessment does not take sufficiently into account the branch’s own business model, including the customer’s types of customer, and does not include an assessment of the risk factors associated with customer products, services, and transactions, and delivery channels and countries or geographies. where the business activities are conducted. This is particularly true of the risk of the branch being abused for terrorist financing.

The branch is instructed to adjust its money laundering policy so that it is based on the risk assessment that sets the branch’s overall strategic objectives in the area of ​​money laundering and describes the risks the branch wishes to take. 

In addition, the branch is required to ensure that it has adequate internal controls to include risk management, knowledge management procedures, investigation, listing and reporting obligations, information retention, employee screening and internal control for effective prevention, mitigation and management of risks. money laundering and terrorist financing. 

Finally, the branch is instructed to ensure that, in all cases when establishing customer relationships and in changing customer relationships, it assesses whether it is relevant to obtain information about the purpose and intended nature of the customer relationship.

Link:

Inspection Statement

Categories: Anti-Money Laundering Finanstilsynet Updates Inspection Reports

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