The Norwegian Financial Supervisory Authority published an on-site inspection report and enforcement decision against Sparebank 1 Østlandet, concluding that the bank had shortcomings in meeting basic requirements under Norway’s anti-money laundering rules at the time of the inspection and imposing an administrative fine of NOK 30 million. The inspection (15 to 16 September 2022) identified weaknesses including insufficient resources and key-person risk in second-line functions, inadequate employee training, gaps in internal control and board reporting, and a risk assessment and written procedures that were not sufficiently tailored to the bank’s actual exposure or documented for supervisory review. Sample testing of 64 customer files also found widespread deficiencies in customer due diligence and documentation, including around identification, authorised representatives and beneficial ownership, as well as weaknesses in ongoing follow-up, with the fine covering breaches across multiple core obligations. The decision also orders remedial customer due diligence and investigations in a specific sampled customer relationship by 30 April 2025. An appeal against the decision was lodged on 8 May 2025, and payment collection is set to follow the appeal process described in the decision.
Norwegian Finanstilsynet 2025-03-26
Norwegian Financial Supervisory Authority imposes NOK 30 million anti-money laundering fine on Sparebank 1 Østlandet
The Norwegian Financial Supervisory Authority imposed a NOK 30 million fine on Sparebank 1 Østlandet for failing to meet anti-money laundering requirements. The inspection revealed deficiencies in resources, training, internal controls, and customer due diligence. The bank is ordered to conduct remedial actions, with an appeal lodged against the decision.