“Know Your Customer” checklist is not just a formality

2023 01 10

A bank can fire its client if it does not feel comfortable with the client’s compliance information or its absence. Such information can relate to sanctions, anti-money laundering, the origin of funds, corruption, and similar compliance issues. Importantly, the banks do not need to prove the wrongdoing. Just a lack of comfort is sufficient.

WALLESS team successfully represented one bank in two court cases of client off-boarding. The cases show that a bank may terminate its contractual relationship with the client if the bank’s own risk assessment signals an alert that is beyond the bank’s appetite.

WALLESS winning team included associate partners Renata Jatužytė-Mulevičienė and Simona Vosylienė and partners Gediminas Rečiūnas, Gediminas Dominas, and Simona Drukteinienė.

For more need-to-know information for market participants and lessons to be learned by clients of financial institutions, click here: https://bit.ly/3VXdMTZ

#riskassessment #banking #supremecourt

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