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Latvian FCMC fines LPB Bank 2.2 mln euros for violating laws on financial crime prevention

BC, Riga, 19.10.2018.Print version
The Financial and Capital Market Commission (FCMC) of Latvia has fined LPB Bank 2.2 mln euros for violations of the law and regulations on the prevention of money laundering and terrorism financing, and ordered LPB Bank to dismiss the bank's board member Arnis Kalverss, who is responsible for the bank's measures against financial crime, informs LETA.

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.


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