The Financial Supervisory Authority of Norway has published an inspection report and decision imposing an administrative penalty of NOK 150,000 on real estate brokerage firm Meglerhuset Borg AS for multiple breaches of the Anti-Money Laundering Act. The authority found significant deficiencies in the firm’s anti-money laundering (AML) risk assessment, written procedures, internal controls, training, and compliance in the execution of brokerage assignments. The on-site inspection (3 December 2024) reviewed 19 cases, including assignments settled internally and via Weboppgjør AS, and identified deviations in 17 of them. Key AML shortcomings included a template-based risk assessment that was not tailored to the business, gaps in assessing risks linked to outsourcing, IT systems, client account inflows and outflows, customer and geographic risk factors, and terrorist financing. Procedures were not demonstrably board-approved, were not based on the current risk assessment, and lacked adequate routines for transaction risk classification, identifying account holders with disposal rights, beneficial owner checks, politically exposed person (PEP) screening, investigation of suspicious circumstances, and staff training. Beyond AML, the authority also identified material weaknesses in the firm’s real estate brokerage risk management and internal control, client funds security, documentation that client account interest rates were market-based, and errors in calculating and paying interest to counterparties, including underpayment to sellers in 12 cases (NOK 137–913 per case) that the firm later corrected. In project sales under the Housing Construction Act, the inspection found repeated late or non-compliant guarantees and instances where buyers took over more than a month before a temporary occupancy permit, without the firm adequately meeting its duty of care and advice. Meglerhuset Borg AS may appeal within three weeks of receiving the report, with the Financial Supervisory Authority Appeal Board as the appellate body. Collection is handled by the tax authorities after the appeal deadline expires, or after an appeal is decided, with a three-week payment deadline from invoicing.
Norwegian Finanstilsynet 2025-07-09
Financial Supervisory Authority of Norway imposes NOK 150,000 penalty on Meglerhuset Borg for anti-money laundering breaches
Norway's Financial Supervisory Authority fined Meglerhuset Borg AS NOK 150,000 for multiple Anti-Money Laundering Act breaches, citing deficiencies in risk assessment, internal controls, and compliance. The inspection revealed significant AML shortcomings, including inadequate risk assessments and procedures, and identified material weaknesses in real estate brokerage risk management and client fund security. The firm can appeal the decision within three weeks.