Jyske Bank Fined €3.22 Million for Anti-Money Laundering Failures

Jyske Bank, Denmark's third-largest financial institution, has been fined €3.22 million (DKK 24 million) for failing to comply with anti-money laundering (AML) requirements. The penalty was imposed following shortcomings in the bank’s customer due diligence (CDD) practices related to 35 clients with mortgage loans in Southern Europe.

The case, which spans from March 2010 to September 2021, involved a small liquidation portfolio managed by Jyske Bank’s Keyplan Mortgage unit. These loans were originally established prior to 2012. The affected customers were solely mortgage holders, repaying their loans without access to payment accounts or other banking products offered by Jyske Bank.

“We immediately addressed the specific shortcomings in the handling of the mortgage loans when they became known. In general, we have a strong and comprehensive focus on the combating of financial crime and money laundering,” said Peter Schleidt, Managing Director of Jyske Bank, in response to the fine.

Throughout the investigation, Jyske Bank cooperated with the Danish Special Crime Unit (SØIK). Schleidt expressed satisfaction that the case had now been resolved, stating, “We are pleased that the case is now closed.”

The Danish lender, which employs 3,953 full-time staff, has accepted the fine and confirmed that it will not provide further comments on the matter.

By fLEXI tEAM