AML Enforcement: DNB Fined $48.1M for Anti-Money-Laundering Failures

In the latest sign of regulators clamping down on inadequate anti-money laundering programs, DNB recently confirmed that Norway’s financial supervisory authority, Finanstilsynet, will levy a $48.1 million fine for failing to comply with anti-money-laundering rules, regulations, and standards.

DNB, which is Norway’s largest lender, had already indicated late last year that a potential fine could be incoming after Finanstilsynet published a report on internal investigations into an Icelandic fishery called Samherji, which had been accused of money-laundering. Norwegian authorities subsequently investigated DNB’s involvement with Samherji.

“DNB acknowledges that the anti-money-laundering efforts had not given sufficient results at the time of the inspection, and the bank therefore accepts Finanstilsynet’s fine,” the lender said in a statement.

How to Avoid AML Fines

AML fines for failing to apply and/or maintain proper controls have been increasing worldwide, and it is paramount for organizations to implement a framework and GRC technology architecture that can sufficiently support AML compliance and align with business objectives.

AML laws are continually growing in scope and importance as regulatory bodies increase the extent of requirements and institute guidelines and procedures to assist organizations in preventing and detecting illegal activity. Financial institutions that fail to implement and follow the correct procedures and compliance processes can face harsh penalties for not having the proper governance, risk, and compliance programs in place to protect the organization and financial system as a whole.

Fighting money-laundering activities and corruption is a serious task for financial services firms that requires sound management practices. To remain compliant with AML regulations in the U.S. and abroad, organizations need to build an integrated risk and compliance framework. Implementing GRC processes supported by a flexible technology solution equips institutions with the tools and data they need to make informed risk management decisions and keep pace with regulatory change.