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Finanstilsynet Inspection Report: Paiblock A/S

Statement regarding money laundering inspection in Paiblock A / S

In the spring of 2021, the Danish Financial Supervisory Authority carried out an inspection in the area of money laundering in Paiblock A / S (the company)

Following the call for inspection, the company stated that the company had postponed the start of its business. The company thus had no activities or customer portfolio.

Based on the company’s information on the lack of activity, based on a risk-based approach, the Danish FSA decided to focus on the company’s risk assessment regarding money laundering and terrorist financing and the company’s written policy in accordance with the Money Laundering Act. The inspection was conducted as an off-site inspection.


Summary

The company is registered in accordance with the Money Laundering Act, section 48, subsection. 2. The company will offer customers the opportunity to buy and sell virtual currencies. The company will also offer virtual wallets to its customers. The company will on-board customers digitally and has its business area worldwide.

The Danish Financial Supervisory Authority assesses that the company’s inherent risk of being used for money laundering or terrorist financing will be highly 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 offering currency exchange to customers all over the world. The company will also offer virtual wallets.
The company’s customer portfolio is expected to consist exclusively of distance customers from around the world, and the company’s services are suitable for money laundering and terrorist financing.

The inspection has given rise to the following supervisory reactions.

The company was instructed to revise the company’s risk assessment so that it identifies and assesses the risk of the company being used for money laundering and terrorist financing. In doing so, the company must ensure that the risk assessment treats the company’s risk separately for money laundering and terrorist financing, respectively.

The company was also instructed to draw up a policy in the area of money laundering, which is based on the company’s risk assessment, sets the company’s overall strategic goals in the area of money laundering, and contains the principled decisions on how the company should be organized to address money laundering and terrorist financing risks.

Link:

Inspection Report

Categories: Anti-Money Laundering Finanstilsynet Updates Inspection Reports

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