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In October, National Bank of Ukraine Applied Corrective Measures to Four Banks for Violations of AML/CFT Law

2 November 2018

Press Release

 

In October 2018, the National Bank of Ukraine (the NBU), based on the inspection results in the area of prevention and counteraction to legalization (laundering) of the proceeds from crime, terrorism financing and financing proliferation of weapons of mass destruction (AML/CFT), applied corrective measures to the following four banks:

 

·           UNEX BANK JSCa written warning as a corrective measure for the failure to identify their customers within the set timeframe under the laws of Ukraine

 

·           Idea Bank PJSC – a written warning as a corrective measure for the following:

    failure to identify financial transactions subject to mandatory financial monitoring

    improper identification of politically exposed persons (PEPs)

 

·           ALTBANK PJSC – a written warning as a corrective measure for the following:

    improper execution of the duty to develop and update internal documents on financial monitoring

    violation of the know-your-customer requirements regarding politically exposed persons and their related parties

    improper execution of the duty to ensure risk management and risk revaluation in their activity

    violation of the procedure for informing the manager of the reporting institution on the respective measures taken by the bank

 

·           Commercial Bank Center PJSCthe following corrective measures:

а) fine in the amount of UAH 1.2 million for the bank’s risky activity in the area of financial monitoring. In particular, the risky activity included financial transactions with participation of agents who acted on behalf of and were controlled by the bank and who accepted cash deposits through deposit ATMs or self-service kiosks (SSKs) with the aim of further transfer without collection of the cash

b) a written warning for the following:

    failure to identify and verify customers who opened accounts with the bank under the laws of Ukraine

    improper execution of the bank’s duty to develop, implement, and frequently update internal documents on financial monitoring under the laws of Ukraine

    improper identification and research of politically exposed persons.

 

For your information, since 31 August 2016, the NBU has been regularly informing the public on the corrective measures applied to banks for their violations of the AML/CFT law and for violations relating to their risky activities in this area that can jeopardize the interests of depositors or other creditors of the banks.

 

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Last modification   02.11.2018