The Austrian Financial Market Authority (FMA) has penalised Raiffeisen Bank International (RBI) for a breach of due diligence requirements to prevent money laundering activities and terrorism financing.
The Austrian banking group was fined €2.75m due to inadequate verification of beneficial owners, failure to update necessary documents and for not procuring enough information about the ownership and control structures with regard to high-risk customers.
RBI was under investigation by the Austrian regulator since 2016 following its mention in the Panama papers, Reuters reported.
Following the announcement, Austrian news agency APA quoted an RBI spokeswoman as saying that the bank would appeal against the decision, which is not final.
Last month, FMA fined another Austrian bank HYPO Vorarlberg Bank citing breach of due diligence requirements.
This bank was fined €414,000 for inadequate checking of the identity of the beneficial owner of high-risk customers.
The bank engaged a third party to carry out the verification process thereby placing the comparable performance of its own duty in doubt. It also failed to submit a suspicious activity report.
However, following a request from the HYPO Vorarlberg Bank, the FMA started a procedure to review the legality of the publication.