Bank SYZ Reprimanded By FINMA Over AML Regulation Breaches

The Swiss Financial Market Supervisory Authority, or FINMA, had made an announcement today. This announcement is regarding its reprimanding of Bank SYZ SA in regards to a breach of its duty due diligence. This is in regard to anti-money laundering, in particular.

Completely Trusting Of Suspicious Angola-Based Client

It was determined by FINMA during enforcement proceedings that Bank SYZ SA had breached its regulations regarding anti-money laundering. This breach occurred in regard to a very important business relationship it has with a client based in Angola.

Back in February of 2020, FINMA had opened enforcement proceedings against Bank SYZ SA back February of 2020. This was to investigate information the regulator had received in regards to possible violations to the rules regarding money-laundering, focusing on the Angola-based client and its very important business relationship with said client.

Multi-Million USD Transfers Nothing To Worry About

Through this proceedings’ course, it was discovered by FINMA that the bank had failed to make sufficient efforts to investigate their client and the substantial growth of their assets. Alongside this, the bank had failed to resolve issues that should have raised significant suspicions. This comes in spite of the fact that this client, in particular, had already been identified as having links with a politically exposed person (PEP), with the relationship itself classified in this category. The bank further failed to fulfill, or inadequately fulfilled, its obligations to clarify high-risk transactions done by the client. In some of these transactions, tens of millions were moved in the process.

It was thus concluded by FINMA that the AML processes the bank has in place were inadequate. This comes in consideration of the bank’s relationship with this client in particular.

Fixing Things Up, Some

While FINMA did reprimand the bank, it also concluded that it had met its obligation regarding statutory reporting. This, in turn, had enabled the relevant criminal prosecution authorities to investigate the case, as well. Alongside this, the regulator noted that the bank had taken numerous steps in order to respond to the case. These steps were done with the express goal of being to restore full compliance with the regulations of FINMA.

The regulator has deemed it fit to appoint an independent auditor. This auditor will review the implementation of these measures as the supervision is ongoing.

Generally speaking, it’s a prudent idea to suspect a multi-millionaire making very large-scale, suspicious transfers, who are also living within the African continent. The idea that no one knew something within that bank is highly suspect, but this can only be left to groundless speculation.

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