Frankfurt, Dusseldorf A few years ago, the Frankfurt Branch of the Bank of China was still very popular among politicians and regulators. Based on an agreement between Bundesbank and the Central Bank of China, the institute was commissioned in 2014 to create a yuan-denominated platform to boost business in Chinese currency in the Frankfurt Financial Center.
In 2021 the whole picture changed. According to information from Handelsblatt, the German branch of the State Bank of China has major problems with the Bafin Financial Supervisory Authority. The background to the recent dispute is that the institute has separated from the Head of Compliance and Anti-Money Laundering.
Bafin does not trust the rest of the staff to take care of sensitive subject areas appropriately, as are many of the people familiar with the subject matter report. Therefore, the Financial Supervisory Authority has instructed the financial institution to hire an external service provider to monitor compliance with the rules and combat money laundering.
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