On 27 November 2015, the Board of the Financial and Capital Market Commission (FCMC) decided to impose a fine of EUR 55 000 on Bank M2M Europe AS for deficiencies in customer due diligence and customer transaction monitoring, identified during an inspection.
The Law on the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and of Terrorist Financing and the FCMC Regulations for Enhanced Customer Due Diligence establish requirements for banks to ensure customer due diligence, providing for the cases where a bank must verify the nature and economic substance of transactions, origin of the funds, compliance of indicated beneficiary etc.
In accordance with amendments to the Credit Institution Law on new requirements for applying fines to credit institutions of May 2014, the FCMC may impose a fine of up to 10% of the bank’s net revenue of the previous year. In case of Bank M2M Europe AS, it would be up to EUR 449 046. In determining the fine of EUR 55 000, the FCMC considered the nature of identified deficiencies, the Bank’s cooperation with the FCMC within the administrative case and the measures taken by the Bank to address identified shortcomings, as well as the fact that the Bank had already prevented majority of deficiencies established until imposing the fine and has been still enhancing its internal control system.
The fine applied to the Bank will be paid into the State budget.
The addressees of the decision may appeal the decision to the Administrative District Court within one month of the announcement of the decision.
Public Relations Specialist
Financial and Capital Market Commission
Phone: +371 67774808; +371 29467009,