Statement on money laundering inspection in Nordea Denmark, branch of Nordea Bank plc, Finland
On 24 and 25 September 2019, the Danish Financial Supervisory Authority inspected Nordea Denmark, a branch of Nordea Bank plc, Finland (hereinafter the “branch”).
The inspection was a functional examination of the money laundering area as part of the ongoing supervision of the branch. The inspection focused primarily on the branch’s customer knowledge procedures.
Prior to the inspections, the branch had initiated a number of measures with a view to strengthening the branch’s measures to prevent money laundering and terrorist financing. This process has continued after the inspections with the introduction of further measures. In view of the time elapsed since the inspections were carried out, the circumstances described in the report may have changed.
Risk assessment and summary
The branch is the second largest bank in Denmark. It offers all types of banking products from simple deposit accounts to private customers, complex financial products to investors and full service banking solutions for traders of all sizes, asset management and investment. The branch has a very significant number of private customers, corporate customers and institutional customers, many of whom have complicated group structures and / or financial arrangements. The volume of transactions, including cross-border money transfers, is significant. The branch has significant activities in securities trading, including wholesale and private banking, and it has an extensive number of cross-border correspondent connections.
Against this background, the Danish Financial Supervisory Authority assesses that the branch’s inherent risk of being used for money laundering or terrorist financing is high.
On the basis of the inspection, the branch is instructed to ensure that adequate customer due diligence procedures, including updating and updating customer due diligence information, are carried out for all customers in accordance with the Money Laundering Act, where this has not already happened.