Lax AML compliance can downgrade a bank’s credit rating

By Christine Duhaime | May 10th, 2019

According to this article in the Wall Street Journal, the level to which a bank is AML compliant, or not, is now a key factor used to determine its credit rating, and is more material than any other non-financial factor. The new report cites the fact that bank supervisors and federal regulators around the globe are now beginning to crack down on AML failures in banks and adopting a zero-tolerance approve to compliance. The report cites the downgrading of Swedbank AB and Danske Bank A/S resulting directly from their reported lax AML controls pursuant to which they accepted hundreds of millions of dollars from politically exposed persons without complying with PEP law. Both Swedbank and Danske Bank have replaced their CEOs over AML compliance issues.

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