The Austrian Financial Market Authority stated that the Austrian regulatory agency has imposed a fine slightly above $21,000 on Raiffeisen Bank International for anti-money laundering control errors.
This sanction, which is the largest ever imposed by Austrian regulators, stems from deficiencies in the bank’s checks regarding two unnamed banks, which according to the source are based in Cuba and Bahrain.
Despite the relatively small size of the fine, it further tarnishes Raiffeisen’s reputation, which is already under scrutiny for continuing operations in Russia while many Western banks have severed ties.
The bank plans to challenge the sanction in court, claiming that the accusations are unfounded and that it has appropriate mechanisms in place to combat money laundering.
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US authorities are also investigating Raiffeisen’s Russian connections, which poses a potentially more serious threat to its business. Last month, the US Department of the Treasury warned the bank that its access to the US financial system may be restricted due to its dealings in Russia. This came after over a year of scrutiny by Washington.
