What staff oversight gaps did BNM identify at AEON Credit?

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BNM identified a staff oversight failure at AEON Credit that allowed a Domestic List specified entity to be onboarded and caused a delay in freezing the customer’s account after confirmation.

BNM said the oversight failure meant AEON Credit did not reject a potential customer even though the entity was a positive match to a specified entity on the Domestic List. BNM also said this same failure contributed to a delay in freezing the customer’s account after AEON Credit confirmed the customer was a specified entity. BNM attributed the breaches to a lack of staff oversight and a gap in AEON Credit’s standard operating procedure (SOP).
The Domestic List specified entity was onboarded despite a positive match
BNM reported that an on-site supervisory examination found AEON Credit onboarded a customer who was a specified entity listed under the Domestic List. The central bank said AEON Credit failed to reject the potential customer despite the entity being a positive match.
Freezing the account happened later than required after confirmation
BNM stated that there was also a delay in freezing the customer’s account once AEON Credit confirmed the customer was a specified entity. This delay was linked to the same compliance failures identified during the examination.
The gaps were tied to staffing oversight and SOP weaknesses
BNM said the breaches were attributed to lack of staff oversight and a gap in AEON Credit’s standard operating procedure (SOP). In other words, both staff control and the internal process used to carry out TFS checks and actions were found to be insufficient.
Remedial steps were later taken to strengthen compliance
BNM said AEON Credit later took remedial measures by enhancing its SOP and conducting refresher training for relevant staff. These steps were aimed at ensuring compliance with targeted financial sanctions requirements going forward.

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What staff oversight gaps did BNM identify at AEON Credit?

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