The regulatory action, which became legally binding on June 14, targets significant deficiencies in the bank’s due diligence processes. BaFin determined that a considerable backlog in data maintenance left the institution in violation of the German Money Laundering Act. Under these legal requirements, banks must actively monitor business relationships to ensure their services are not exploited for criminal purposes or terrorism financing.
German watchdog orders NordLB to clear customer data backlog
Germany’s financial regulator, BaFin, has formally ordered Hanover-based NordLB to overhaul its customer data management. The mandate follows findings that the lender failed to meet mandatory anti-money laundering standards, specifically regarding the verification and timely updating of client information necessary to detect and prevent illicit financial activities.
NordLB representatives stated that the bank is engaged in constructive dialogue with regulators to resolve these issues. Management claims that a remediation plan is already being implemented and that significant progress has been achieved in clearing the data backlog. The bank is now tasked with executing the remaining steps of its compliance plan to satisfy BaFin’s specific requirements.
Comments (0)
No comments yet. Be the first!