FCMC imposed EUR 305 000 fine on AS “Latvijas pasta banka”
The Financial and Capital Market Commission (hereinafter, the FCMC) has imposed a fine of 305 000 euro on AS “Latvijas pasta banka” (hereinafter, the Bank) for identified breaches of anti-money laundering and counter terrorist financing (AML/CTF) regulations.
In determining the amount of the fine applicable to the Bank the FCMC took into consideration the Bank’s financial indicators, as well as the fact the Bank has recognized the identified deficiencies and committed to take the necessary measures to address them and to improve the Bank’s internal control system.
Within the administrative case, the FCMC also carried out an inspection to check activities of several customers, who had performed transactions aimed at gaining control in the banks of Moldova in 2012-2013 mentioned in the fraud investigation conducted by the National Bank of Moldova (publicly available Kroll report).
The FCMC and the Bank have entered into an administrative agreement, according the which the Bank has committed to address shortcomings identified in the Bank’s internal control system by the FCMC and in observing provisions of Credit Institution Law, anti-money laundering and counter-terrorist financing regulations and underlying laws and regulations. Under the administrative agreement the parties have agreed on the proposed further measures that the Bank commits to fully meet within the set terms in order to enhance its internal control system in the AML/CTF area and to strengthen its operational efficiency.
A number of obligations are set for the Bank in the administrative agreement, i.e. to assess compliance of its internal control system with regulatory requirements, to ensure training of the staff involved in provision of customer services and fulfilment of the AML/CTF provisions and others. Based on inspection findings the Bank is also required to carry out a fit and proper assessment of the board member responsible for the AML/CTF issues.
The FCMC will monitor whether the Bank fully meets its contractual obligations set out in the administrative agreement.
Public Relations Specialist
Financial and Capital Market Commission
Phone: +371 67774808, +371 29467009