Finance
AI
Coop Pank's AML Controls Trigger Client Backlash, Payment Delays
Estonian financial institution Coop Pank is confronting growing customer discontent and potential client departures after its strict enforcement of anti-money laundering laws resulted in prolonged payment delays and account freezes, a situation highlighted by the public case of an Ida-Virumaa entrepreneur and a recent television exposé.
- —Coop Pank is experiencing increased attention from clients due to persistent payment delays and account freezes, leading some customers to consider leaving the bank.
- —A prominent case involves an Ida-Virumaa entrepreneur, Marek Kaldur, who has faced prolonged "control" over his personal and business accounts, resulting in payment delays of days or weeks.
- —The issues appear to be linked to Coop Pank's adherence to international regulations, specifically the Law on the Prevention of Money Laundering and Terrorist Financing, which mandates transaction monitoring and the blocking of suspicious payments.
- —Public awareness of these banking practices heightened following a January 19th broadcast of the show "Kuuuurija," which discussed a significant lottery win where a portion of the funds remained frozen in a Coop Pank account due to anti-money laundering regulations.
Recap
Coop Pank's rigorous application of anti-money laundering laws has created a significant operational and reputational crisis. The bank is caught between its international regulatory obligations and the fundamental need for reliable customer service, with the current approach alienating clients and risking a substantial loss of business.