Millions of fines: NBU punishes 5 banks for financial monitoring violations
8 March 05:40
The National Bank of Ukraine (NBU) has taken enforcement actions against five banks and six non-bank financial institutions for violations of financial monitoring and currency legislation. The sanctions include fines, written warnings and other regulatory measures. This was reported by "Komersant Ukrainian" with reference to the National Bank.
Reasons for the sanctions
The NBU found violations of legislation in the field of preventing and combating money laundering, terrorist financing and financing the proliferation of weapons of mass destruction (AML/CFT), as well as in the field of currency regulation.
Banks subject to sanctions
OTP Bank received the largest fine:
- A fine of UAH 10.05 million was imposed for violation of the requirements for improper customer due diligence, application of a risk-based approach and failure to establish a high level of risk for customers from the aggressor state.
- A fine of UAH 51 thousand was imposed for failure to submit or submission of information on currency transactions to the National Bank of Ukraine with errors.
The bank was issued a written warning for improper fulfillment of obligations to update internal AML/CFT documents and lack of effective risk management procedures, as well as for failure to properly verify politically exposed persons and persons related to them.
JSC International Investment Bank received:
A fine of UAH 3.87 million for violation of currency supervision requirements, in particular for improper analysis of documents on currency transactions of clients and failure to take into account the requirements of Regulation No. 8 in the course of currency supervision.
A written warning for late submission of documents on currency transactions at the request of the National Bank, which violates the requirements of part nine of Article 11 of the Currency Law and paragraph 79 of Regulation No. 90.
A written warning for violation of the requirements for failure to implement a risk-based approach to activities and failure to provide reliable information at the request of the National Bank in a timely manner, in violation of AML/CFT legislation.
JSC Bank of Investments and Savings received:
A fine of UAH 3.05 million for the violation:
- inadequate verification of new and existing customers, as well as monitoring of their financial transactions (Article 8 of the AML/CFT Law);
- improper application of the risk-based approach in the bank’s activities (Article 7 of the AML/CFT Law).
JSC Ukreximbank received:
A fine of UAH 1.05 million for violations:
- inadequate customer due diligence (Article 8 of the AML/CFT Law);
- improper application of the risk-based approach in the bank’s activities (Article 7 of the AML/CFT Law).
JSC CB PrivatBank received:
a written warning for improper fulfillment of the bank’s obligation to conduct due diligence of an existing customer.
Which non-bank financial institutions received fines
PT “Doncredit” received:
- A fine of UAH 4.77 million was imposed for the institution’s failure to fulfill its obligation to ensure the proper organization and conduct of initial financial monitoring.
- a written warning for failure to comply with the requirements for submitting an internal audit report in electronic form to the Financial Monitoring Department within 20 business days after signing, as well as violation of the AML/CFT reporting procedure.
IFC Avers LLC received:
- a fine of UAH 1.40 million for violation of requirements for failure to provide information from the video archive at the request of the inspection team in a timely manner and in full, as well as failure to provide the premises with a video control system for transactions with currency values.
Selfie Credit LLC received:
- a penalty of UAH 8.75 thousand for violation of the requirements regarding the institution’s failure to fulfill its obligation to ensure proper organization and conduct of primary financial monitoring.
B.L.G. Microfinance LLC received:
- a fine of UAH 595 thousand for violation of the requirements for improper fulfillment of obligations to develop and implement internal documents, verify clients, obtain permission to establish business relations with politically exposed persons, maintain client questionnaires, store documents for verifying business reputation, apply a risk-based approach, submit reliable information at the request of the National Bank and submit statistical reports in violation of the established procedure.
FC Finuniversal LLC received:
- a fine of UAH 255 thousand for violation of requirements for improper fulfillment of the obligation to develop, implement and update internal documents taking into account risks, lack of procedures for effective risk management, improper verification of new customers, lack of internal verification of activities for compliance with legal requirements, improper informing the manager about measures for primary financial monitoring, failure to submit reports on the results of internal inspections on time and violation of the procedure for submitting statistical reports.
Capital Business Group LLC received:
- a fine of UAH 51 thousand for violation of the requirements for improper fulfillment of the obligation to develop and implement internal AML/CFT documents that would meet the requirements of the law and risk assessment, as well as the lack of effective procedures for risk management and primary financial monitoring. Also, improper application of a risk-based approach in the institution’s activities.
- a written warning for violation of the requirements for improper fulfillment of the obligation to provide the NBU with reliable information and documents upon request, as well as failure to conduct due diligence of clients, in particular, the lack of verification of clients in accordance with the requirements of the law.
