German watchdog BaFin orders NordLB bank to fix customer data shortcomings

BERLIN, Aug 3 (Reuters) - Germany's financial watchdog BaFin said on Monday it had ordered NordLB to bring its customer data up to date to remedy deficiencies after the Hanover-headquartered lender was found to be in violation of the country's anti-money laundering law. 

• BaFin said it found deficiencies in NordLB's customer due diligence obligations, specifically shortcomings in processes and a considerable backlog in updating customer data.

• "The bank has thus violated the provisions of the Money Laundering Act," it said in a statement.

• BaFin ordered NordLB to submit and implement a plan to update customer data to comply with its legal obligations.

• It said its order had been legally binding since June 14.

• NordLB said it was in "close, constructive and solution-oriented communication" with BaFin over the order and "significant progress" had already been made.

• "We are working intensively to meet the requirements and have initiated appropriate measures. The required plan has already been developed and is being consistently implemented," it said.

• Under Germany's Money Laundering Act, banks are required to fulfil customer due diligence requirements, including monitoring business relationships and ensuring data is up to date, to prevent their services from being used for criminal activity or the financing of terrorism.

(Reporting by Klaus Lauer; Writing by Joe BavierEditing by Ludwig Burger)