Bank regulator accuses BMW Finance of anti-money laundering violations

France’s banking and insurance regulator announced on Friday that it had fined BMW Finance 500,000 euros for failings in its anti-money laundering and terrorist financing controls.

France’s banking and insurance regulator announced on Friday that it had fined BMW Finance 500,000 euros for failings in its anti-money laundering and terrorist financing controls. BMW Finance is a specialized credit institution, associated with the German car manufacturer BMW.

The French Regulatory and Prudential Resolutions Authority (ACPR) “held that BMW Finance’s anti-money laundering and terrorist financing (LCB-FT) system and its asset freezing system presented several shortcomings”, says a press release. information. He felt that BMW Finance “has taken too long to provide adequate human resources for these facilities and comply with regulations”.

Financial penalty accompanied by reprimand.

Only two people were affected by the implementation of its LCB-FT system during the control of the authority, a number “obviously insufficient considering the amount of activities of the establishment and the level of responsibilities entrusted to these employees”, it replies. ACPR.

In its decision, the Sanctions Committee “nevertheless noted that the specificity of BMW Finance’s activities led to the consideration that the scope of the deficiencies identified in the LCB-FT system was limited” and “considered the fact that “the necessary corrective measures. it was established following an internal audit and deployed during and after regulation.” This financial penalty, issued on May 16, is accompanied by a reprimand.

BMW Finance offers its customers financing products for long-term leasing or the option to buy cars for individuals and professionals, customers of the group’s dealer network.

It also sells maintenance and breakdown guarantees, insurance and loans to some 172 BMW dealers in France (in 2022) to “enable them to finance certain operational needs and to acquire or rehabilitate their real estate”, explains ACPR.