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Auditing firms PWC and BDO receive a breach fee totaling NOK 5.4 million, after periodic inspections by Finanstilsynet, according to Monday morning audit reports.
PWC will receive a fee of DKK 3.2 million, while BDO will receive a fee of DKK 2.2 million. Finanstilsynet believes that the deficiencies identified in PWC are serious and notes, among other things, the lack of routines in accordance with the Money Laundering Act on several points.
BDO receives some of the same criticism from the audit.
“The offense charge is taken seriously”
In PWC’s supervisory report, Finanstilsynet writes that the lack of routines for risk classification is serious.
The business-oriented risk assessment forms the foundation of the anti-money laundering and terrorist financing audit firm’s work, including the preparation of routines. Given that the auditing company carries out extensive operations, Finanstilsynet believes that the deficiencies are serious, ”the report states.
In addition, it is noted that the absence of written routines becomes even more serious “when the audit revealed a series of breaches of key obligations under the Money Laundering Law in several of the controlled assignments, in areas where routines are deficient.”
In an email to DN, Herman Skibrek, director of Risk and Quality and partner at PWC, says that he has not commented on the subsequent follow-up of the decision on the infringement fee.
– We take the infringement charge very seriously and work every day to improve our work routines and procedures. Finanstilsynet found no indications that our clients were involved in money laundering. At the time of the inspection visit, PwC had already started extensive improvement measures and we have followed this later, he says.
From the audit report, it is clear that PWC has made several allegations against the decision on the infringement fee.
Among other things, PWC believes that “independence and impartiality considerations dictate that the same individuals should not be held responsible for both oversight, subsequent investigations, and sanctions,” and the auditor believes that enforcement of the regulations by from Finanstilsynet is incorrect.
PWC also criticizes the imposition of the infringement fee and has stated “that it has not been the intention to use the infringement fee for less serious infractions, and argues that the notified sanction is not reasonable.”
Lack of routines
BDO, for its part, is criticized for inadequate written routines in key areas such as internal control, training and identification of real rights holders. This partly leads to serious shortcomings, says the report.
The audit writes that it has revealed breaches of duty with respect to routines in several areas, including the performance of the functions of the person responsible for money laundering, internal control and storage of information.
PWC and BDO are two of the largest auditing companies in Norway and have offices in several dozen countries. DN has been in contact with BDO, who did not have an immediate comment on the case.
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