Saxo Bank faces a DKK 313,000,000 (49.7 million) administrative fine from Denmark’s financial watchdog after supervisors flagged anti-money laundering weaknesses in its institutional operations.
The Danish Financial Supervisory Authority issued the fine after finding that Saxo Bank breached its regulations between 2021 and 2023.
“The administrative fine is based on the company’s failure to comply with the requirements for obtaining information regarding the purpose and intended nature of a number of customer relationships, as well as compliance with the requirements for ongoing monitoring for White Label Clients,” the regulator mentioned in the official announcement, as translated to English.
Systemic Deficiencies in Controls
The regulator concluded that the bank failed to obtain sufficient information about the purpose and intended nature of certain customer relationships, in particular those linked to white-label partners.
Under the white-label model, Saxo Bank provides its trading platform to partner institutions, whose clients then access markets through Saxo’s infrastructure.
Although the FSA did not identify specific cases or signs of money laundering, it concluded that the systemic deficiencies in controls justified a substantial response. The fine is framed as a reaction to risk management failures, not evidence of criminal activity.
According to the decision, an initial calculation pointed to a higher penalty, but the FSA applied a reduction after Saxo Bank actively cooperated with the investigation and took immediate steps to restore compliance.
The FSA carried out its inspection of Saxo Bank in May 2023 with a focus on anti-money laundering controls in correspondent relationships within the institutional business. The review also covered broader internal controls and the functioning of the compliance department.
Saxo Bank Speaks
Saxo Bank has accepted the administrative fine, signaling that it will not challenge the FSA’s conclusions. Chief executive and founder Kim Fournais said the bank has launched “a number of strategic and operational initiatives” and invested heavily to strengthen defenses against money laundering.
“Since the inspection in May 2023, Saxo Bank has taken a number of strategic and operational initiatives and invested significantly in the prevention of money laundering and terrorist financing, including improving processes, procedures and reporting in a wide range of areas. Compliance with all applicable laws, rules and regulations in the markets in which Saxo Bank operates is of the highest priority,” Fournais said.
This article was written by Jared Kirui at www.financemagnates.com.Retail FXRead More
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