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Regulator slaps Luxembourg bank with six-figure fine
Money laundering

Regulator slaps Luxembourg bank with six-figure fine

by Yannick HANSEN 13.07.2021 From our online archive
On-site inspection showed RBC Investor Services Bank in Luxembourg did not comply with anti-money laundering laws, regulator said
Headquarters of Luxembourg banking regulator CSSF
Headquarters of Luxembourg banking regulator CSSF
Photo credit: Gerry Huberty

Banking regulator CSSF hit RBC Investor Services Bank, a Luxembourg-based credit institution, with a €237,000 fine in May for failing to comply with anti-money laundering and anti-terrorism financing legislation, the watchdog said on Tuesday.

The fine came after an on-site inspection in 2018 uncovered "serious deficiencies", the CSSF (Commission de Surveillance du Secteur Financier) said in a press release, adding that the maximum fine for the infringement is €250,000.

The European Union's weak defences against money laundering and terrorist financing are allowing hundreds of billions of euros in suspicious transactions to take place every year, the bloc's budget watchdog said in June.

It is estimated that €700 billion to €2 trillion is laundered through the global banking system each year, according to the United Nations' office on drugs and crime – roughly 2% to 5% of the global economy. The value of suspicious transactions in the bloc amounts to 1.3% of the size of the EU economy, according to Europol, the EU's law enforcement agency.

In June, the European Commission took Luxembourg to court, asking the European Court of Justice to impose a daily penalty on the country for failing to put new EU rules to stop money laundering into law.

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