FCC Flash

On October 19, 2023, the Estonian Financial Supervision and Resolution Authority (Finantsinspektsioon) imposed a fine of USD 0.95 million on LHV Pank for AML compliance failures. The Estonian FSA found that the banking and financial services company, LHV Pank, did not comply with anti-money laundering and terrorist financing regulations, particularly in correspondent banking services. Furthermore, the services provided to other financial institutions were inadequately equipped to manage higher risks of money laundering and terrorist financing. It is noted that the bank’s rapid expansion may have contributed to these weaknesses in risk management.

To read in detail, click here https://www.fcctimes.com/2023/10/19/lhv-pank-hit-with-e900000-fine-for-anti-money-laundering-compliance-shortcomings/

The violations include:

  • Breach of the requirements for creating and monitoring business relationships.
  • Failure to comply with the obligation to store data.
  • Deficiencies in AML/CFT risk management.
  • Non-compliance with anti-money laundering and terrorist financing regulations.