ZURICH (Reuters) - Raiffeisen Bank International AG (RBI) has been fined 2.75 million euros ($3.39 million) by Austria’s Financial Market Authority (FMA) for a breach of due diligence requirements for the prevention of money laundering and terrorist financing.
The bank had been under investigation by FMA since 2016 after its name was mentioned in the so-called Panama Papers, a huge data leak that caused a scandal because documents showed how offshore corporations were used to evade taxes.
The FMA said in a statement published on its website on Friday that it imposed the fine for “inadequate checking of the identity of the beneficial owner and failure to regularly update the necessary documents, data and information required to be able to understand ownership and control structures with regard to high-risk customers in specific individual cases”.
RBI could not be reached for comment, but Austrian news agency APA quoted an RBI spokeswoman as saying that the bank considered it had met all its obligations to prevent money laundering and would appeal against the decision.
Hypo Vorarlberg Bank, the second Austrian bank under investigation after it was named in the Panama Papers, was fined 414,000 euros by FMA last week.
Reporting by Silke Koltrowitz; Editing by Alison Williams