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Finanstilsynet Inspection Report: Vestjysk Bank A/S

Statement on inspection in Vestjysk Bank A / S (money laundering area)

In September 2020, the Danish Financial Supervisory Authority carried out an inspection of Vestjysk Bank (the bank). The inspection was an investigation of the money laundering area. The inspection included the bank’s risk assessment, policies, procedures and internal controls. In addition, the inspection included the bank’s customer due diligence procedures, monitoring of private and business customers. Finally, the inspection included the bank’s duty of investigation, listing, notification and retention as well as the bank’s whistleblower scheme.

The head office was located in Lemvig at the time of the inspection and had 15 branches located in Central, West and East Jutland. Operationally, the bank was divided into Agricultural Center, Private Banking, Large Customers Business, Special Commitments and customer service. The bank had entered into an outsourcing agreement with Nykredit regarding trade finance / letters of credit. Following the inspection, Vestjysk Bank has been merged with Den Jyske Sparekasse. The merger took effect on 13 January 2021. The new, merged bank is called Vestjysk Bank and now constitutes Denmark’s 8th largest bank.

The bank primarily wanted customers residing within the above-defined geographic market area, and to have its strength in classic banking operations in relation to both private and business customers.

The Danish FSA assesses that the bank’s inherent risk of being misused for money laundering or terrorist financing is normal to high assessed in relation to the average of financial companies in Denmark. In its assessment, the Danish Financial Supervisory Authority has placed particular emphasis on the bank offering a number of financial products to both private and corporate customers. Conversely, the bank limits its business to traditional financial products and, as mentioned, is primarily based in its local area with customers who primarily reside in Denmark.

Based on the inspection, there are some areas that give rise to supervisory reactions.

The bank is instructed to obtain, update and update customer knowledge information for all business and association customers in accordance with the Money Laundering Act.

The bank is also instructed to carry out stricter customer due diligence procedures for all customers, where the bank assesses that there is an increased risk of money laundering or terrorist financing.

The bank is also instructed to ensure that the bank’s monitoring system covers and can apply changes in customer behavior and deviations from the bank’s knowledge of the customer to generate alarms.

Finally, the bank is instructed to ensure that the risk classification of each business relationship is based on the business and risk profile of all persons who can dispose of the account.

Link:

Inspection Report

Categories: Anti-Money Laundering FATF Finanstilsynet Updates Inspection Reports

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