Statement of inspection in Repay Finance A / S (money laundering area)
In July 2019, the Danish FSA was on inspection in Repay Finance A / S. The inspection was an investigation of the money laundering area as part of the ongoing supervision of the company. The inspection included the company’s risk assessment, policies, procedures and internal controls, as well as customer knowledge procedures, including customer monitoring.
Risk assessment and summary
The company is registered under section 48 (2). 1, of the Money Laundering Act, as the company carries on business lending activities.
The company is part of a group with ACEA Capital A / S as the parent company. The company offers smaller consumer loans to private customers via the Internet. In addition, the company also offers loans through associated or linked bin names, including Turbolån A / S. The company does not offer other products and is only present in the Danish market.
The FSA considers that the company’s inherent risk of being abused for money laundering or terrorist financing is normally assessed in relation to the average of financial companies in Denmark. In the assessment, the Danish FSA has placed particular emphasis on the fact that the company offers a single financial product and that the product is only offered to private customers residing in Denmark. Conversely, the company’s customer portfolio consists exclusively of distance customers.
Based on the inspection, there are a number of areas that give rise to supervisory reactions.
The FSA found that the company’s risk assessment does not adequately contain a documented analysis of the company’s risk factors and does not adequately address the risk of the company being abused for money laundering and terrorist financing separately. Against this background, the company is instructed that the risk assessment must be revised accordingly.
The company is also required to revise its anti-money laundering policy so that it clearly identifies and delineates the risks the company wishes to take in the area of money laundering.
The company is also given an injunction to revise the company’s investigation and listing duty procedures.
Likewise, the company is required to ensure that documents, data and information are verified at a reliable and independent source.
The company is instructed to ensure that in all cases sufficient information is obtained and stated about the purpose and intended nature of the customer relationship.
The company is also given an injunction to ensure that stricter customer awareness procedures are conducted in customer relationships where the company has assessed that there is an increased risk of money laundering and terrorist financing.
The company is instructed to ensure that the necessary monitoring of the company’s customers is carried out, including that the information about the customer is regularly updated and kept.
The company is required to ensure that internal controls are carried out to see if the company complies with the requirements of the Money Laundering Act and that the checks made are documented.
The company is also required to ensure that the continuation of business relationships with a customer who is granted a politically exposed person and customer relationship with a close or close business partner of a politically exposed person is approved by the money laundering officer.
The company is instructed to ensure that there is increased monitoring of a business relationship with a politically exposed person or a close or close business partner of a politically exposed person.
The company receives an injunction for non-compliance with the provision in section 7 (2) of the Money Laundering Act. 2, by not having a money laundering officer in the company between March 12, 2019 and August 1, 2019, during which period the FSA conducted its inspection.
The company is also given an injunction to comply with its duty of confidentiality regarding notifications and inquiries, cf. First
The company is instructed to ensure that
Finally, the company is required to ensure that SØIK is notified immediately of knowledge of, suspicion of, or when the company has reasonable grounds to suspect that a transaction, funds or activity has or has been linked to money laundering or financing of terrorism.
The Financial Supervisory Authority has notified the company of violations of the rules in the Money Laundering Act on knowledgeable procedures, stricter knowledge procedures, ongoing monitoring of customers and compliance with confidentiality in case of notifications and inquiries of customers.