BaFin Says Varengold Has Serious Anti-Money Laundering Deficits

German financial markets regulator BaFin prohibited Varengold Bank on June 27 from conducting transactions with “payment agents” and other Iran-related third parties due to money laundering risks and “serious” deficiencies in money laundering prevention, according to statement.

• A special audit ordered by BaFin, which has not yet been completed, found that Varengold Bank had “systematic and serious deficits” in complying with and implementing the requirements of money laundering law
• Audit raised concerns about the fulfillment of required enhanced due diligence obligations and the creation and operation of a monitoring application, especially for Iran-related transactions
• BaFin appointed on June 27 ...