Financial Supervisory Authority of Norway finds anti-money laundering control deficiencies at SpareBank 1 Sør-Norge after Stavanger loan intermediation allegations

The Financial Supervisory Authority of Norway (Finanstilsynet) has published a report from a document-based inspection of SpareBank 1 Sør-Norge ASA, initiated following media allegations of illegal loan intermediation in the Stavanger area. The inspection reviewed compliance with anti-money laundering rules for customers and transactions linked to the case and identified shortcomings; the bank has prepared a remediation action plan and must report progress to the supervisor. Finanstilsynet found that the bank had not obtained sufficient information or made sufficient assessments of the purpose and intended nature of customer relationships, with customer declaration forms assessed as overly generic. Deficiencies were also identified in automated customer risk classification, ongoing customer monitoring, the transaction monitoring system’s ability to detect large and unusual transactions, and the handling of monitoring alerts, including cases where alerts were closed without adequate assessments and investigations, although alert handling appeared to strengthen over time. The bank is expected to provide semi-annual status reports on the action plan, with the first report covering the position as at 31 December 2025 and due by the end of the following month unless otherwise agreed. Finanstilsynet also noted it may request assessments of how implemented measures have worked and asked the bank to send a copy of the letter to its auditor.