German lender Commerzbank has been fined 1.45 million euros ($1.54 million) by Germany’s financial watchdog for what the regulator said were inadequate efforts to prevent money laundering, DPA reported.
Commerzbank and its online subsidiary Comdirect Bank, which the bank fully acquired in 2020, breached their supervisory obligations, Germany’s financial watchdog BaFin announced.
“As a result of insufficient supervision, officials breached money-laundering obligations by not updating customer data promptly or sufficiently and by taking insufficient internal security measures,” according to the German watchdog.
In addition, enhanced due diligence obligations were inadequately implemented in three cases due to a breach of supervisory obligations.
According to a bank spokesperson, the necessary adaptation of processes and updating of data was fully completed as early as 2022.
The problem stems from the integration of the subsidiary “Comdirect Bank” into the “Kommertsbank” group. The process reviewed the requirements for verifying the legitimacy of new customers, as well as the processes and checks for updating customer data.
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Tags: German financial watchdog fined Commerzbank neglecting antimoney laundering procedures
