Regarding the administrative contract between FCMC and Swedbank and penalty charges

Added: 23.11.2016
The Association of Latvian Commercial Banks (ALCB) expresses an overall positive opinion of the active action and attitude of the Financial and Capital Market Commission and approves of strict measures regarding the consideration of demands related to bank internal control systems and money laundering prevention. This proves that when it comes to money laundering prevention and consideration, the demands of Latvian legislation and its enforcement are high and keep getting higher. The banks are also fully aware of these demands and provide increasing effort and resources to comply with these demands. LKA hopes that the work of FKTK will continue and be consistent regarding all players in the financial service market.
The Financial and Capital Market Commission (FCMC) and Swedbank have reached a settlement and agreed upon improvements to be made to provide effective operation of the internal control system of the bank and eliminate the flaws discovered during the inspection performed by FCMC. Under the contract a penalty of 1.36 million euros will be charged from Swedbank, and the bank has already voluntarily begun to eliminate the flaws discovered during the inspection and make necessary improvements.

The largest bank in Latvia has been penalized due to an insufficient internal control system regarding the prevention of money laundering. Specific suspicious transactions were not found during the inspection. Since the inspection as a whole and its conclusions were primarily related to the servicing of off-shore non-residents, the bank has decided to fully close the servicing of such clients in order to completely detach itself from such risks in the future. The bank assures that the reputation of Latvia and international reputation is more important, therefore all necessary measures are and will be performed to prevent risks.


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