Anti-money laundering: Cardif receives a penalty of 2.5 million

Bad publicity for BNP Paribas. Cardif Assurance Vie, the life insurance subsidiary of the European banking giant, faces a reprimand and a sanction of 2.5 million euros due to “serious deficiencies” in its anti-money laundering system and the financing of terrorism, can we read in a decision of the sanctions commission of the tricolor insurance gendarme dated April but made public on Tuesday.

The Prudential Control and Resolution Authority (ACPR) explains that these shortcomings, linked to malfunctions of new software implemented in 2015, “were particularly likely to compromise Cardif’s ability to meet its due diligence obligations” and the prompt transmission of suspicious transaction reports to Tracfin.

The unit for the fight against money laundering and the financing of terrorism, attached to Bercy, was thus transferred declarations at the end of periods deemed “excessively long”.

Slowness of “corrective actions”

Based on the results of a control carried out between the summer of 2018 and 2019, the members of the sanctions committee also judged that Cardif was not doing it well to detect any transactions for the benefit of people or entities subject to an asset freeze measure. The ACPR’s decision thus highlights “insufficient periodicity of scanning the customer base”.

To justify the amount of the penalty, the ACPR emphasizes that Cardif “is one of the leaders in the French insurance market” and has all the financial and human resources to meet its obligations. The authority also argues that the company has “progressed only slowly in the corrective actions that it has put in place”.

Sanction of 10 million euros in 2014

BNP Paribas Cardif, of which the former CEO Renaud Dumora, was recently promoted, said “take note” of the decision, stressing that it is “without any impact on the activity or the customers”.

Cardif Assurance Vie ensures that “significant resources” have been deployed to strengthen the system deemed to be faulty and is continuing “its regular investment program”. On the other hand, the insurer does not comment on a possible appeal, knowing that it can take place within two months.

In 2014, Cardif Assurance Vie had already received a reprimand and a sanction of the ACPR of 10 million euros, in particular for not having respected its obligations in terms of finding beneficiaries of insurance contracts. unclaimed life. The company had not filed an appeal.

While France has been the scene of numerous attacks in recent years, the ACPR has been very attentive to the subject of the fight against money laundering and the financing of terrorism. In 2019, the supervisor’s Sanctions Commission issued 9 substantive decisions, including six on this subject, underlines its annual report published in 2020.

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