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Finanstilsynet Inspection Report: Coinify ApS

Statement on inspection in Coinify ApS (money laundering area) 

In May 2020, the Danish Financial Supervisory Authority inspected Coinify ApS. The inspection was an investigation of the money laundering area. The inspection included the company’s policies, procedures and internal controls as well as customer due diligence procedures including monitoring of customers.

Risk assessment and summary

The company is registered in accordance with the Money Laundering Act, section 48, subsection. 2. The company offers customers the opportunity to buy and sell virtual currencies through the company’s Trade Platform. Furthermore, the company has a payment service (Payment Platform), where corporate customers have the opportunity to accept virtual currency as a means of payment.

The company’s primary customers are companies that offer payment services and that are onboarded through the company’s website.

The Danish Financial Supervisory Authority assesses that the company’s inherent risk of being used for money laundering or terrorist financing is normal to high assessed in relation to the average of financial companies in Denmark. In the assessment, the Danish Financial Supervisory Authority has placed special emphasis on the company having a simple business model without the possibility that the company’s customers may have deposits in the company. Conversely, the company’s customer portfolio consists exclusively of distance customers, and the company’s services are suitable for money laundering and terrorist financing.

Based on the inspection, two areas have given rise to supervisory reactions.

The company is instructed to revise the company’s risk assessment so that it adequately identifies and assesses the risk of the company being used for money laundering and terrorist financing. 

The company is instructed to ensure that the company’s money laundering manager approves policies, controls and business procedures.

Link:

Inspection Report

Categories: Anti-Money Laundering Finanstilsynet Updates Inspection Reports

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