The FCMC carried out an on-site inspection of the Bank, during which the FCMC identified a number of breaches concerning the Bank’s internal control system, customer base risks and their management. The violations indicate serious shortcomings in the Bank’s internal control system in the area of prevention of money laundering and terrorism and proliferation financing, as they have been detected in the key elements of customer due diligence and transaction monitoring. The Bank had not established an adequate internal control system to meet its risks in the field of prevention of money laundering and terrorism and proliferation financing, which would ensure effective compliance with the regulatory requirements such as:
In view of above, it is concluded that the Bank has not ensured the effective functioning of the internal control system in the field of the prevention of money laundering and terrorism and proliferation financing in a way that its activities comply with the regulatory requirements for the prevention of money laundering and terrorism and proliferation financing; moreover, the breaches are considered as essential and sustainable. At the same time, the FCMC takes into account the progress made by the Bank in addressing shortcomings identified by the FCMC.
In accordance with the FCMC’s decision, the Bank has to submit to the FCMC a plan of the measures to carry out the legal obligations imposed and to address the irregularities and shortcomings identified and to take the measures provided for in the plan within the specified time limits in order to prevent further irregularities of a similar nature in the internal control system in the field of money laundering and terrorism and proliferation financing risks management. Besides, an independent assessment of the appropriateness and effectiveness of the Bank’s internal control should be carried out involving a sworn auditor or a commercial company of sworn auditors.
The amount of the fine imposed on the Bank shall be 90% of the maximum statutory amount, 10% of the Bank’s total annual turnover. The fine specified for the Bank shall be paid into the State budget within one month from the date of entry into force of this administrative act.
Financial and Capital market Commission
Phone: +371 67774808,+371 67774807