By CARLO BOFFA, EU Correspondent
Germany’s finance watchdog said on Tuesday it imposed remedial action on one of Nomura’s local units for failing to rectify shortcomings in the prevention of financial crime.
Instinet Germany is part of Wall Street’s oldest electronic communication system and a prominent dark pool trading venue, which the Japanese bank bought in 2007.
The measures came after several audits revealed that the company’s compliance areas were not functioning properly, BaFin said.
“Deficiencies were found, among other things, in risk analysis, the appointment of money laundering officers, customer onboarding, customer risk assessment, and compliance with enhanced customer due diligence obligations,” it said.
Instinet had previously adopted remedial actions, but BaFin said that the plan proved unsuccessful.
Financial institutions are required by law to establish internal safeguards to mitigate the risks of being used for money laundering and terrorist financing. They also need to monitor the effectiveness of these controls and update them when needed.
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