Sanctions imposed by FCMC

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Date     Person Type of offence Type of sanction imposed Status
2.07.2014. JSC "Reģionālā investīciju banka" Violations of the provisions of the Law on the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and of Terrorist Financing and FCMC regulations: deficiencies in customer-non-resident due diligence and monitoring of exposures A fine of 70000 euro In force
8.10.2014. JSC "Rietumu Banka" Violation of the provisions of the Credit Institution Law: inadequate reputational risk assessment of exposure to a customer Warning In force
7.11.2014. JSC "NORVIK BANKA" Violation of the Regulations on the Preparation of Public Quarterly Reports of Credit Institutions:  Shortcomings in the published performance reports:  Q1 and Q2 2014 Warning In force
7.11.2014. JSC Expobank On certain weaknesses in the  internal control system – the bank's failure to ensure relevant customer business documentation for supervisory purposes in line with the provisions of the Regulations for Enhanced Customer Due Diligence and Law on the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and of Terrorist Financing Warning In force
15.05.2015. JSC "Rietumu Banka" Violations of the provisions of the Law on the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and of Terrorist Financing and FCMC regulations: weaknesses in the internal control system –  deficiencies in customer due diligence and monitoring of exposures. A fine of 35000 euro In force
12.08.2015.

 

JSC "TRASTA KOMERCBANKA" and Chairman of the Board Gundars Grieze and members of the Board Viktors Ziemelis and Māris Fogelis

Infringement of the Credit Institution Law: insufficient reputation and credit risk assessment in certain cases Warning In force

23.10.2015.

 

JSC Expobank

 

Deficiencies of customer due diligence and in  transaction monitoring documentation

 

A fine of 105 000 euro In force

27.11.2015.

Bank M2M Europe JSC

Deficiencies of customer due diligence and in  transaction monitoring 

A fine of 55 000 euro In force

27.11.2015.

JSC "TRASTA KOMERCBANKA" shareholders Igors Buimisters and Ivan Fursin

Failure to fulfil statutory obligation of shareholder having a qualifying holding under the Credit Institution Law

Warning In force

25.11.2015.

 

11.12.2015.

 

14.12.2015.

 

JSC "PrivatBank"

Violations of the provisions of the Law on the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and of Terrorist Financing (AML/CFT), Credit Institution Law, as well as Regulation on Establishment of the Internal Control Framework and Regulations on Customer Due Diligence.

A fine of 2 016 830 euro and suspending Chairman of the Board and Board member and request to fully replace the Bank's Board

Individual fine for Board members:

Oleksandrs Trubakovs – 96 449 euro

Iveta Ķerpe  – 25 869 euro

Rolands Pētersons – 15 411 euro

 

Oleksandrs Mekekečko – 7 607 euro.

 

 

 

On 06.05.2016, the FCMC and the Bank entered into an administrative agreement on closing disputes regarding the decisions of 25.11.2015 and 11.12.2015. As to remainder, on 4 members of the board, the FCMC on 11.04.2016 decided to leave the decision of 25.11.2015 unchanged. On 11.04.2016, an appeal was lodged against the FCMC decision.

 

The FCMC's decisions of 26.04.2016 and 10.05.2016, leaving the decision of 14.12.2015 unchanged, have been appealed. 

22.01.2016.

JSC "TRASTA KOMERCBANKA"

Deficiencies in adjusting several priority areas (capital increasing, improving the Bank's development strategy and internal control system).  Restrictions on Bank`s rights, activities and fulfilment of obligations by the Bank. In force

02.03.2016.

JSC "NORVIK BANKA"

Breach of the Credit Institution Law – the bank failed to comply with FCMC requirements for crediting processes 

Warning In force

03.03.2016.

JSC "TRASTA KOMERCBANKA"

Serious and sustained breaches of regulatory requirements in several areas for a long period - the Bank has been failing to comply with the regulatory capital requirements, while the Bank’s shareholders have not been able to address this non-compliance by increasing the Bank's capital; the Bank has been operating with losses for a long period and has no viable business model or development strategy adequate to the situation; serious and sustained breaches of the anti-money laundering and counter-terrorist financing regulations.

Withdrawal of authorisation (ECB decision) In force

09.03.2016.

JSC "Baltic International Banka" and Chairwoman of the Board Ilona Guļčaka

 Violations of the provisions of the Law on the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and of Terrorist Financing as well as Regulation on Establishment of the Internal Control Framework and Regulations on Customer Due Diligence.

 

A fine for Bank - 1 100 000 euro

Individual fine for Chairwoman - 25 000 euro

In force

26.05.2016

ABLV Bank, AS and Member of the Board of Bank,  Aleksandrs Pāže

Violations of the Law on the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and of Terrorist Financing and the FCMC's regulatory requirements: deficiencies in the bank's internal control system – insufficient customer due diligence and monitoring of transactions; and violations of the Credit Institution Law regarding reporting requirements.

A fine of 3 166 682 euro imposed on the bank. Reprimand issued to the board member A. Pāže.

In force
25.07.2016. JSC "Latvijas pasta banka" Violations of the Law on the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and of Terrorist Financing and the FCMC's regulatory requirements: deficiencies in the bank's internal control system – insufficient customer due diligence and monitoring of transactions and violations of the Credit Institution Law A fine of 305 000 euro imposed on the bank. In force
06.09.2016. Versobank AS Violations of the provisions of the Law on Credit Institutions- non-conformity with the procedure of provision of finnacial services in Latvia 

1. To prohibit Versobank AS  from the provision of financial services in the Republic of Latvia.

2. To establish that the prohibition set forth in Point 1 attributes to attraction of new clients in the territory of the Republic of Latvia and termination of contractual relationship with the clients attracted in the Republic of Latvia.

3. To request Versobank AS to terminate contractual relationship with clients that were attracted under the freedom to provide services in Latvia.

The case regarding Versobank AS is closed. Versobank AS has ensured compliance in full with the Commission’s Decision No 150 and prohibitions to provide financial services in the territory of the Republic of Latvia do not apply any longer.

*The Commission's further explanation: On 21.07.2017 the Regional Administrative Court made a decision to terminate the court proceedings based on Versobank AS relevant application, which was based on the administrative agreement concluded between the Commission and Versobank AS. 

Versobank AS (Reg. No 10586461, address Hallivanamehe 4, 11317 Tallinn, Estonia) may provide financial services in the Republic of Latvia and attract new clients in the territory of the Republic of Latvia according to the provisions of legal acts, i.e. when the respective permission are obtained.

 

     
22.11.2016. "Swedbank" AS Violations of the Law on the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and of Terrorist Financing and the FCMC's regulatory requirements: deficiencies in the bank's internal control system – insufficient customer due diligence and monitoring of transactions  

A fine of 1 361 954 euro imposed on the bank

In force
16.05.2017. AS "SEB Banka" Violations of FCMC regulations: breach of regulatory information systems security provisions applicable to the financial and capital market participants. Inability to ensure the limits imposed on using the ordinary internet banking authentication tool – a code card - within the set time limit (01.04.2017). 

A warning

In force
26.06.2017. JSC "Baltikums Bank" Breaches of AML/CTF law and FCMC regulatory requirements: weaknesses in customer due diligence and transaction monitoring that led to the situation that bank had been used to circumvent international sanctions requirements imposed against North Korea. 

A fine of 35 575 euro

In force
26.06.2017. JSC "Privatbank" Breaches of AML/CTF law and FCMC regulatory requirements: weaknesses in customer due diligence and transaction monitoring that led to the situation that bank had been used to circumvent international sanctions requirements imposed against North Korea.

A fine of 35 575 euro

In force
26.06.2017. JSC "Reģionālā investīciju banka"

1) Breaches of AML/CTF law and FCMC regulatory requirements: weaknesses in customer due diligence and transaction monitoring that led to the situation that bank had been used to circumvent international sanctions requirements imposed against North Korea;

2) Failure to ensure effective functioning of internal control system.

A fine of 570 364 euro.

Warnings, issued to the AML/CTF responsible officials of the bank

In force
17.07.2017. JSC "Rietumu banka"

1)    Breaches of AML/CTF law and FCMC regulatory requirements: weaknesses in customer due diligence and transaction monitoring that led to the situation that bank had been used to circumvent international sanctions requirements imposed against North Korea;

2)    Failure to ensure effective functioning of internal control system.

A fine of 1 566 604 euro.

Warnings, issued to the AML/CTF responsible officials of the bank

In force
19.07.2017. AS "NORVIK BANKA" 

1)    Breaches of AML/CTF law and FCMC regulatory requirements: weaknesses in customer due diligence and transaction monitoring that led to the situation that bank had been used to circumvent international sanctions requirements imposed against North Korea;

2)    Failure to ensure effective functioning of internal control system.

A fine of 1 324 667 euro. 

Warnings, issued to the AML/CTF responsible officials of the bank

In force

 

08.11.2017.

 

AS "Meridian Trade Bank"

Infringements of the Credit Institution Law and underlying regulatory requirements relating to the functioning of internal control systems on credit risk and internal governance.

A fine of 889651 euro

In force