Finland: S-Bank fined nearly €1m over lax monitoring of money laundering

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A leading bank in Finland, S-Bank has been fined 980,000 euros by The Finnish Financial Supervisory Authority (FIN-FSA) over negligence with ‘Know Your Customer’ (KYC) procedures. This is a violation of the requirements given by the group on the Act of Detecting and Preventing Money-Laundering and Terrorist Financing. The Watchdog on Wednesday said that the bank has issues with its IT systems, and did not obtain sufficient customer due diligence data.

S-Bank is the leading bank in Finland with over three million customers. The fine came after FIN-FSA previous warnings of insufficient KYC data on its customers. The group said that the fine does not translate to money laundering or terrorist financing offences.

The vice president of the bank, Jussi Sokka made it known to the public that the bank does not completely agree with the FSA accusations but accepted their decision for a fine. He added that the S-bank ensures that it tracks its customers’ payment behaviour through several channels to ensure that it does not violate the AML Act.