On 25 July 2016, Latvijas pasta banka has entered into administrative agreement with the Financial and Capital Market Commission (FCMC).
The FCMC, as a result of inspections, has detected violations on the part of the bank in the area of prevention of laundering the proceeds from criminal activity (money laundering) and of terrorist financing (AML/CTF), and has imposed a fine on Latvijas pasta banka in the amount of EUR 305 000.
The parties have agreed in the administrative agreement on further measures to be implemented by Latvijas pasta banka within a specified time frame in order to enhance the internal control system in the area of AML/CTF and strengthen its effectiveness.
Latvijas pasta banka admits the violations detected during the inspection: these concern earlier transactions which, when viewed in the light of today’s much more stringent criteria, no longer comply with the present due diligence and documenting requirements. Therefore, Latvijas pasta banka has already introduced a stronger customer due diligence and is abandoning the customers in respect of which the continuation of services may result in a heightened AML/CTF exposure.
Latvijas pasta banka has set priorities for itself and is taking the necessary actions in order to rectify the established deficiencies: Latvijas pasta banka is investing both in human resources by upgrading the competencies of the relevant specialists and in technologies by introducing new information systems that better support the management of AML/CTF-related risks via automating the processes related to examining, assessing and documenting the customers and their transactions.
Latvijas pasta banka is going to maintain a constructive collaboration with the FCMC and monitor any developments in the AML/CTF requirements, with the purpose to strengthen the Latvian banking sector reputation in Europe.