SEB Bank fined 1.79 mln euros by Latvian regulator

Source: Xinhua| 2019-12-21 04:04:41|Editor: yan
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RIGA, Dec. 20 (Xinhua) -- The Latvian financial regulator has imposed an administrative fine of 1.79 million euros on SEB Bank for non-compliance with anti-money laundering (AML) rules and infringements of international sanctions.

The bank has been ordered to pay 672,684 euros for shortcomings in the AML area and 1,121,140 euros for infringements of international sanctions, according to a statement released on Friday by the Financial and Capital Market Commission (FCMC).

The FCMC and SEB Bank have concluded an administrative agreement regarding an inspection the FCMC carried out at the bank in 2017. In the document both sides agree on measures that have to be taken to improve the bank's compliance with AML rules and the prevention of terrorism financing.

The 2017 inspection revealed that further improvements of the bank's internal control systems were needed as SEB Bank had not always obtained sufficiently detailed and comprehensive information about its clients "to ascertain that the client's transactions cannot be viewed as suspicious, as well as on certain limited occasions the client's beneficial owner was not sufficiently proved or documented," the FCMC said.

SEB Bank independently and on its own initiative developed an action plan to deal with the flaws identified by FCMC and has already implemented most of the measures included in the plan, the regulator said.

Another targeted inspection that was carried out at SEB Bank in 2019 revealed some flaws in compliance with the law on international sanctions.

Sweden's SEB is the third largest bank in Latvia by assets.