Daily Dash: Commerzbank To Pay €1.75m Fine In Germany

April 23, 2024
Commerzbank has been fined in its home market due to "supervisory" failures, and Hong Kong has fined a commercial bank for failing to record the names of senders and receivers of wire transfers.

Commerzbank To Pay €1.75m Fine In Germany

Commerzbank, one of Germany's largest financial institutions, has been fined by the country's financial regulator for failing to comply with anti-money laundering (AML) regulations. 

The fine is related to a subsidiary of Bank AG, with the Federal Financial Supervisory Authority (BaFin) saying that both institutions had "breached their supervisory duties". Commerzbank took over Bank AG in 2020.

Commerzbank had failed to comply due to not updating customer data on time and not providing adequate security measures, meaning that due diligence was not carried out in a compliant manner. 

The bank has since released a statement to the media clarifying that it is now fully compliant, having amended its previous weaknesses. 

Hong Kong Bank Hit By $1.1m Fine For AML/CTF Failures

The Hong Kong Monetary Authority (HKMA) has issued a HK$9m ($1.1m) fine to Hua Nan Commercial Bank for violations of the territory’s anti-money laundering and counter-terrorist financing (AML/CTF) laws.

In a disciplinary statement, the HKMA said that from 2012 to 2018, the bank’s Hong Kong branch failed to “continuously monitor” its business relationships with some of its customers.

A HKMA investigation found that Hua Nan had neglected to examine the background and purpose of transactions made by said customers. It had also failed to put this information into writing as required.

“As an ordering institution, the bank failed to record the names of the recipients and/or include the names of the recipients in the messages accompanying a number of cross-border outgoing wire transfers,” said the HKMA.

The penalty was mitigated by the bank’s cooperation with the HKMA, its “self-identification” of the offending transactions and the fact that it previously had a clean compliance record.

FCA Wins Praises For Metrics On Growth, Competitiveness

The UK’s Financial Conduct Authority (FCA) has been praised in a new study that compares regulators’ metrics on driving growth and international competitiveness.

Last week, TheCityUK published a report which names the FCA and the Prudential Regulation Authority (PRA) as “world-leading” examples of how regulators can evidence their contributions to growth and competitiveness.

The report looked at 21 jurisdictions to develop a framework for benchmarking financial service regulators against one another.

“The report shows that while several regulators have a comparable objective to advance competitiveness and growth, only a few publish metrics on par with those set for the UK regulators,” said TheCityUK. “This gap makes benchmarking across jurisdictions very challenging.”

The FCA’s secondary objective to facilitate growth and international competitiveness is set out in the Financial Services and Markets Act 2000.

As covered by Vixio, Bim Afolami has made delivering on this objective a key part of his role as City minister and economic secretary to the Treasury.

EU Regulators Release New DORA Consultation

The European supervisory authorities (ESAs) have launched a new public consultation on the draft regulatory technical standards (RTS) for the conduct of oversight activities in relation to the joint examination teams under the Digital Operational Resilience Act (DORA).

The primary goal of the draft RTS is to lay out the criteria for determining the composition of the joint examination teams and the designation of the members, their tasks and working arrangements.

It aims to ensure a balanced participation of staff members from the ESAs and from the relevant national competent authorities.

These draft RTS also aim to ensure that joint examination teams perform efficiently and effectively, given their central role in the daily oversight of critical ICT third-party service providers (CTPPs).

Stakeholders can submit their comments on the draft RTS by May 18.

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