Croatia’s central bank is investigating UniCredit SpA (OTCPK:UNCFF) over questionable transactions made by clients of the Italian bank in the Balkan country, Bloomberg reports, citing people with knowledge of the matter.
The probe of UniCredit unit called Zagrebacka Banka dd looked at multiple movements of money that fell just short of the amount that triggers more detailed disclosure requirements, the people said.
The investigation is trying to determine whether the bank had the proper internal controls and processes to identify and prevent money laundering by its clients.
The probe can potentially lead to fines, the people said.
UniCredit CEO Jean Pierre Mustier reshuffled management and introduced stricter controls at the Croatian unit after evidence from the investigation surfaced at the end of last year, they said.