Germany’s financial watchdog BaFin has ordered the Frankfurt branch of Greek lender Piraeus Bank to take measures to prevent money laundering and terror financing.
BaFin disclosed the order, which had been made on January 13, on Wednesday. The statement offered no further detail.
Piraeus Bank is one of Greece’s four largest banks. Its main shareholder is bank rescue fund HFSF (Hellenic Financial Stability Fund) with a 61% stake.
“This is a known issue of upgrading the systems of our branch in Frankfurt,” an official at Piraeus Bank’s Athens headquarters said, declining to be named.
“It has been agreed with German authorities that the upgrade will take place within the first half of this year,” the official said. BaFin declined to comment further.