Bafin Keeps a Close Eye on Over twenty Troubled Banks
In the German banking sector, Bafin, the financial supervisory authority, has identified over twenty banks with potential problems or the risk of becoming problematic, as revealed by Bafin President Mark Branson. These banks are under Bafin's spotlight, with a focus on around two dozen institutions specifically.
Bafin has identified deficiencies in several companies' approach to money laundering prevention. In response, Bafin has assigned a special representative to six of these institutions to tackle this issue.
Branson hints at upcoming challenges in commercial real estate, predicting continued market pressure and resulting bank losses. However, he expresses optimism regarding the residential real estate market as long as a deep recession with high unemployment is avoided.
Bafin closely monitors around two dozen banks exhibiting signs of potential issues in financial supervision. These banks, according to Bafin, might be grappling with money laundering concerns, as acknowledged by Bafin, which has discovered significant gaps in anti-money laundering systems and compliance measures for several institutions.
Insights
Bafin's measures are a part of broader efforts to ensure compliance with anti-money laundering regulations. Bafin has taken specific action against PayOne, a payment service provider, assigning a special monitor due to persistent weaknesses in its AML systems and compliance measures. Bafin's activities in this area include conducting special audits and increasing supervisory and inspection activities.
Money laundering is a significant concern for Bafin, requiring active monitoring and intervention across various entities in the financial sector, including payment institutions, credit institutions, and other obliged entities.
