Erscheinung:09.11.2023 | Topic Measures, Anti-money laundering BaFin orders Leonteq Securities (Europe) GmbH to remedy shortcomings in the area of money laundering prevention
The Federal Financial Supervisory Authority (BaFin) has ordered Leonteq Securities (Europe) GmbH to remedy shortcomings in its arrangements for the prevention of money laundering and terrorist financing. Serious shortcomings were found in the company’s outsourcing of internal controls and safeguards, performance of due diligence and compliance with record-keeping and retention requirements. BaFin had designated these issues as areas of emphasis for the annual audit of the company.
The notice from BaFin is final and binding.
Background information:
Companies such as Leonteq Securities (Europe) GmbH, which are subject to BaFin’s anti-money laundering supervision (obliged entities as defined in section 2 (1) no. 2 of the Money Laundering Act (Geldwäschegesetz – GwG)), must observe the relevant provisions of the GwG when outsourcing internal controls and safeguards.
For example, they are required to notify the supervisory authority of outsourcing in advance. This is governed by section 6 (7) of the GwG. In addition, they must conclude outsourcing contracts and establish appropriate controls for the outsourced processes, as laid out in section 17 (5) and (6) of the GwG.
Companies subject to anti-money laundering supervision must observe due diligence requirements, which vary depending on the institution’s business segment and the risk evaluation of the customer.
Companies must record and retain information gathered in the fulfilment of their due diligence requirements, as governed by section 8 of the GwG. Compliance with these record-keeping and retention requirements serves to ensure documentation of an obliged entity’s business activities over a specified period.
Announcement
The Federal Financial Supervisory Authority (BaFin) has issued a notice ordering Leonteq Securities (Europe) GmbH to remedy shortcomings in arrangements relating to the prevention of money laundering and terrorist financing on the basis of section 51 (2) sentence 1 of the Money Laundering Act (Geldwäschegesetz – GwG).
The notice from BaFin is final and binding.
