Wednesday, October 28, 2020

Malta’s regulator fines Credorax Bank over anti-money laundering breaches


Credorax Bank has been slapped with a €51,000 fine by the Financial Intelligence Analysis Unit (FIAU) for failing to provide it with information in a timely manner.

In a notification on the FIAU’s website, the anti-money laundering unit said Credorax Bank had given delayed replies to 37 requests for information and outright failed to reply to two other requests.

The bank specialises in cross-border e-commerce and processed €4.1 billion worth of payments in 2018.

Financial institutions regulated by the FIAU are expected to reply to information requests within five days due to the often urgent nature of their investigations.

- Advertisement -

[su_quote] PEPs are subject to more rigorous anti-money laundering controls [/su_quote]

The FIAU said that Credorax’s delayed replies arrived from two to 20 days late.

This failure to reply to information demands in a timely manner meant the bank had breached anti-money laundering laws, the FIAU said.

In a separate FIAU notification, the unit said that an unnamed notary had been ordered to improve anti-money laundering controls.

- Advertisement -

The FIAU found during a compliance visit that the notary did not have a documented business risk assessment and had not properly assessed the risk factors of customers.

It was also found that, in a small part of the files reviewed, the notary had failed to obtain a declaration about whether the client was a politically exposed person (PEP) or not.

PEPs are subject to more rigorous anti-money laundering controls due to the heightened corruption risk.

In a particular case, the FIAU discovered that declarations were only obtained after a transaction had taken place.

The notary was warned that a fine could follow if the necessary anti-money laundering improvements were not made.

According to the FIAU’s last available annual report for 2018, reports from notaries only made up a small fraction of the suspicious activity reports received by the unit.

All entities falling under the unit’s remit are expected to report suspicious transactions by their clients.


Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World


Latest News

This Week

Actress Felicity Huffman complete full sentence for role in college admissions scam

Felicity Huffman has completed her full sentence for her involvement in the college admissions scandal. As of Sunday, she has finished her sentence, which included jail...

Newark city councilman charged in bribery and kickback scheme

Joseph A. McCallum Jr., a city councilman in Newark's West Ward, has been accused of taking part in a "bribery and kickback" scheme involving...

Swiss court upholds money-laundering conviction of ex-Ukrainian lawmaker Martynenko

A Swiss court has upheld the conviction of former Ukrainian lawmaker Mykola Martynenko for laundering via Swiss banks millions of dollars worth of kickbacks...

Former Harris County deputy constable pleads guilty to transporting drug money and heroin

A former Harris County deputy constable and her husband pleaded guilty Wednesday to charges of conspiracy to possess with intent to distribute heroin, according...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks