Finanstilsynet Inspection Report: Ringkjøbing Landbobank A/S
Statement on inspection in Ringkjøbing Landbobank A / S (money laundering area)
In December 2019, the Danish Financial Supervisory Authority inspected Ringkjøbing Landbo-bank A / S. This was a functional investigation of the money laundering area as part of the ongoing supervision of the bank. The inspection was focused on the bank’s risk assessment, policies, procedures, customer knowledge regarding both private and corporate customers, the ongoing monitoring of customers and the bank’s internal controls and reporting.
Risk assessment and summary
The bank is a regional bank based in North, Central and Western Jutland. In addition, the bank serves private customers from a branch in Copenhagen and corporate customers from a branch in Aarhus. The bank offers traditional banking products with a focus on private customers as well as small and medium-sized business customers. Furthermore, the bank is a niche bank within e.g. renewable energy, real estate projects, doctors, dentists, private banking and wholesale (primarily real estate).
The Danish Financial Supervisory Authority considers that the bank’s inherent risk of being used for money laundering or terrorist financing is normal to high. The Danish FSA’s assessment is i.a. based on the bank’s size, business model, products and customers.
The inspection has given rise to the following supervisory reactions:
The bank is instructed to ensure that the bank’s money laundering policy sets the bank’s overall strategic goals in the money laundering area and identifies and delimits how the bank will manage and limit the risks in the money laundering area based on the bank’s risk assessment.
The bank is also instructed to ensure that the bank conducts adequate investigations of alarms from the bank’s money laundering monitoring and records and stores the results of the investigations.
Finally, the bank is instructed to ensure that the bank has adequate business procedures regarding the investigation of alarms from the bank’s money laundering monitoring as well as the listing and storage of the results of the investigations.
Categories: Anti-Money Laundering Finanstilsynet Updates Inspection Reports