Banks, EU – Baltic States, Financial Services, Latvia, Legislation
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Friday, 29.03.2024, 03:30
Latvian FCMC fines LPB Bank 2.2 mln euros for violating laws on financial crime prevention
The FCMC
has also told the bank to inform the authorities about what measures it would
take to eliminate the shortcomings ascertained by the FCMC, and have its
internal control systems audited by an independent firm.
The FCMC's
decision comes in the wake of a number of inspections the FCMC carried out at
the bank by August 28 of 2018. The FCMC concluded that there were serious flaws
in the bank's internal control system for the prevention of financial crimes.
For
instance, the bank did not document how beneficial owners of the bank's
customers exercised control over such companies, the bank did not timely obtain
documents on the origin of funds in its customers' accounts, customer due
diligence was not performed sufficiently, the bank did not keep track of
unusually large and complex transactions involving the bank's customers, and
there were many other violations that the FCMC could not put up with.