The Financial Conduct Authority fines Commerzbank for money-laundering failings

Friday 19 June 2020 14:09 CET | News

The UK’s financial regulator has fined Commerzbank EUR 42 million for money-laundering failures, including an ‘out-of-control’ system for checking clients.

According to the Financial Conduct Authority (FCA), the Germany-based business bank had failed to put money-laundering controls in place over a period of five years, despite three separate warnings from the regulator. The fine is one of the largest handed out by the regulator in relation to money-laundering failures. Commerzbank London qualified for a 30% discount on the fine because it agreed to cooperate. The full fine would have been EUR 59 million.

Due diligence checks on more than 1.700 clients of Commerzbank’s London office were overdue by 2017, when the regulator acted. Some of these customers were able to carry on transactions with the bank despite the checks not having been completed because of an ‘out-of-control’ system of exceptions. The bank also failed to fix an automated tool for monitoring money-laundering risks. 

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Keywords: Commerzbank, money-laundering, UK, financial regulator, Financial Conduct Authority, FCA, Germany, transactions
Categories: Banking & Fintech
Countries: United Kingdom
This article is part of category

Banking & Fintech