The financial watchdog has threatened to slap penalties on the bank if the latter fails to adhere to specified measures within a set deadline.
In a statement, BaFin noted that it had asked the bank on 28 September to take “specific measures”. The notice is part of regulatory requirements imposed on the bank initially in 2018 and 2019.
The regulator had ordered the bank to implement necessary safeguards and comply with general due diligence obligations on the basis of section 51 (2) sentence 1 of the German Money Laundering Act.
BaFin had also reportedly appointed KPMG as a special representative for three years to oversee implementation of the measures.
The safeguards were in connection with regular customer reviews, correspondent relationships and transaction monitoring.
In response to the latest development, reports quoted a bank spokesperson as saying that there were no new findings in BaFin’s order.
“The deficiencies were previously identified and deadlines were mutually agreed. We are fully aligned with the BaFin on the necessary measures and have already completed a large proportion of them,” the spokesperson added.