The financial regulator BaFin has mandated Leonteq Securities (Europe) GmbH to address shortcomings in their anti-money laundering and counter-terrorist financing measures. Significant deficiencies were identified, including issues with outsourcing internal security measures, implementing due diligence, and meeting recording and retention requirements. BaFin’s directive, issued under Section 51 Paragraph 2 Sentence 1 of the Money Laundering Act (GwG), is legally binding.
Background: Companies like Leonteq Securities (Europe) GmbH, subject to BaFin’s money laundering supervision, must comply with the Money Laundering Act (GwG) when outsourcing internal security measures. This includes notifying BaFin of planned outsourcing, establishing outsourcing contracts, and implementing controls for outsourced processes (GwG Section 6 Paragraph 7, Section 17 Paragraphs 5 and 6). Additionally, these companies must adhere to due diligence obligations, which vary based on business area and customer risk assessment. The documentation and retention of information collected during due diligence are required by GwG Section 8 to provide a record of business activities over a defined period.
Note: BaFin’s decision is binding under legal authority.
By FCCT Editorial Team
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