Post by anenro on Nov 18, 2019 12:47:00 GMT 4
ECB Revokes License of Austrian Bank Facing Money Laundering Allegations
The European Central Bank (ECB) has terminated the license of Anglo-Austrian Bank, better known as Bank Meinl, amid allegations of anti-money laundering (AML) compliance failures, the Financial Times reported Friday.
The ECB’s decision, first disclosed by Austria’s financial regulator, follows an institutional decision to exit the banking sector, the bank told the newspaper in a statement. One of Austria’s best-known financial institutions, the 96-year-old bank said it is sees “no reason to withdraw the licence” and is evaluating potential “legal steps” in response to the decision.
The bank has faced scrutiny since 2016, when Ukrainian and Austrian officials began investigating its alleged role in the laundering of tens of millions of euros linked to former Ukrainian President Viktor Yanukovich–allegations that the institution describes as “absurd,” according to the FT. In 2017, leaked documents indicated that its Antigua subsidiary served as a conduit for millions of illegal transactions tied to Brazil’s Odebrecht corruption scandal.
Earlier this year, Austrian regulators fined Meinl Bank €500,000 for AML compliance violations related to its due diligence controls, the FT said. A separate supervisory action sought to remove certain members of the bank’s board of directors, the newspaper said.
Bank Meinl, which rebranded itself as Anglo-Austrian Bank in June, has also faced other allegations of financial crime. Following the collapse of a €5-billion property fund in 2009, Austrian authorities arrested the bank’s owner, Julius Meinl V, on suspicion of fraud, though the allegations were eventually dropped.
In 2014, Meinl was accused of fraudulently taking money paid out as a €212-million dividend to him and other shareholders. A Vienna court ultimately threw out the charges, the FT said.
Anglo-Austrian Bank has the right to appeal the ECB’s decision but has not yet indicated whether it will do so, nor how it intends to remain in the financial services sector in light of the termination, according to the newspaper.
The European Central Bank (ECB) has terminated the license of Anglo-Austrian Bank, better known as Bank Meinl, amid allegations of anti-money laundering (AML) compliance failures, the Financial Times reported Friday.
The ECB’s decision, first disclosed by Austria’s financial regulator, follows an institutional decision to exit the banking sector, the bank told the newspaper in a statement. One of Austria’s best-known financial institutions, the 96-year-old bank said it is sees “no reason to withdraw the licence” and is evaluating potential “legal steps” in response to the decision.
The bank has faced scrutiny since 2016, when Ukrainian and Austrian officials began investigating its alleged role in the laundering of tens of millions of euros linked to former Ukrainian President Viktor Yanukovich–allegations that the institution describes as “absurd,” according to the FT. In 2017, leaked documents indicated that its Antigua subsidiary served as a conduit for millions of illegal transactions tied to Brazil’s Odebrecht corruption scandal.
Earlier this year, Austrian regulators fined Meinl Bank €500,000 for AML compliance violations related to its due diligence controls, the FT said. A separate supervisory action sought to remove certain members of the bank’s board of directors, the newspaper said.
Bank Meinl, which rebranded itself as Anglo-Austrian Bank in June, has also faced other allegations of financial crime. Following the collapse of a €5-billion property fund in 2009, Austrian authorities arrested the bank’s owner, Julius Meinl V, on suspicion of fraud, though the allegations were eventually dropped.
In 2014, Meinl was accused of fraudulently taking money paid out as a €212-million dividend to him and other shareholders. A Vienna court ultimately threw out the charges, the FT said.
Anglo-Austrian Bank has the right to appeal the ECB’s decision but has not yet indicated whether it will do so, nor how it intends to remain in the financial services sector in light of the termination, according to the newspaper.