Banks, Financial Services, Legislation
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Friday, 19.04.2024, 09:52
Financial watchdog fines BlueOrange Bank with EUR 1.2 mln
FKTK and BlueOrange
Bank have entered into an administrative agreement on setting legal
obligations under the scope of the Law on the Prevention of Money Laundering
and Terrorism Financing in order to improve the functioning of the Bank's
internal control system. The agreement provides that the fine has been reduced
from EUR 3.69 mln to 1,246,798 euro.
The violations have been discovered in 2016 and 2017. FKTK
finds the violations significant, and the bank has been find also earlier for
violations of regulations on prevention of money laundering and terrorism
financing.
The maximum fine for the breach is 10% of the bank's annual
turnover which would be a fine of EUR 3,694,216. FKTK took into consideration
that the bank at its own initiative developed a plan on dealing with the
discovered violations and submitted detail information on the conducted and
planned investments in the IT systems and technologies and improvement of
employees' qualifications.
The bank's management reported that in a year the bank has
introduced significant changes, improved the internal processes and introduced
a new approach to identifying customer risks, and has invested more than EUR
600,000 in IT systems.
The bank in early 2017 has changed its business model,
strategy, expanding its share in the Latvian market, choosing service of
Latvian companies and individuals as the priority direction.
The bank has issued more than EUR 100 mln in loans to
resident customers.
Latvia’s BlueOrange
Bank closed the first nine months of 2018 with EUR 9.603 mln in profit, up
74.7% against the same period last year. The banking group’s profit expanded
82.2 % y-o-y to EUR 9.009 mln.
At the end of June 2018, BlueOrange
Bank was the eighth largest bank in Latvia by assets. The bank’s key owner
is Latvia’s BBG.