Raiffeisen slapped with 2.7 million euro fine over lack of money laundering controls

Austrian regulators smacked Raiffeisenbank International with a 2.74 million euro fine on March 30 over charges that the bank failed to impose adequate anti-money laundering and terrorist financing controls.

The fine is the biggest in Austrian history and comes nearly two years to the day after documents exposed in the April 2016 Panama Papers leak revealed a series of loans going from the bank to companies affiliated with Ukrainian President Petro Poroshenko.

The leak sparked an investigation from Austria’s Financial Market Authority into whether the Vienna-based international lender had followed proper procedures in extending the loans.

“There have been some concerns about financing by Raiffeisen Bank International going to companies whose ultimate beneficial owner is Petro Poroshenko, so we ordered an on-site inspection,” Klaus Grubelnik, the Financial Market Authority’s spokesman, told the Kyiv Post at the time.

Grubelnik did not immediately reply to a phone call about the fine

... read more at: https://www.kyivpost.com/business/raiffeisen-slapped-2-7-million-euro-fine-lack-money-laundering-controls.html