The Norwegian Financial Supervisory Authority (Finanstilsynet) published an inspection report on Eiendomsmegler 1 Nord-Norge AS identifying deficiencies in the firm’s risk assessments, procedures and compliance with the Real Estate Brokerage Act and the Money Laundering Act, including weaknesses in client money handling and elements of settlement execution. The review found gaps in both the brokerage and AML risk assessments and in documented working and control routines, including supervision and follow-up of trainee brokers and assistants. In AML controls, Finanstilsynet highlighted weaknesses in routines for simplified and enhanced customer due diligence and in how the firm distinguishes high-risk classifications from “suspicious circumstances” that trigger further investigation and reporting decisions. Sample testing also identified cases with incomplete or late collection and verification of information on account signatories and authorisations, one instance where a transaction was carried out before notification to Økokrim, and incomplete sanctions screening where the firm did not screen senders and recipients in transactions involving parties beyond buyer and seller. In client money controls, Finanstilsynet noted older reconciliation differences and shortcomings in documenting periodic checks that client account interest terms were market-based, as well as errors in interest calculations and settlement statement information. For new-build sales, guarantees under the Housing Construction Act were provided late in 47 cases across three projects, between 2 and 16 months after required timing, without sufficient documented buyer advice. The report also raised concerns about archiving practices where prospect data became inaccessible to staff after 30 days, gaps in the outsourcing register and risk assessments, and an e-takst valuation issued long after inspection based on customer-provided updates. Finanstilsynet asked the firm to send a copy of the report to its auditor. The firm indicated it has made and will make further updates to risk assessments, routines and controls, including introducing broader sanctions screening, strengthening new-build compliance through a dedicated competence team, and engaging its core systems supplier to address archiving access.
Norwegian Finanstilsynet 2025-07-02
The Norwegian Financial Supervisory Authority publishes an inspection report flagging AML and client funds control shortcomings at Eiendomsmegler 1 Nord-Norge
The Norwegian Financial Supervisory Authority (Finanstilsynet) identified deficiencies in Eiendomsmegler 1 Nord-Norge AS's risk assessments, compliance with the Real Estate Brokerage Act, and the Money Laundering Act. Key issues include weaknesses in client money handling, AML controls, and new-build sales guarantees. The firm plans to enhance risk assessments, routines, and controls, including broader sanctions screening and better archiving access.