March 10 2016
FCMC applies fines to AS “Baltic International Bank” and its board chair
The Board of the Financial and Capital Market Commission (FCMC) adopted a decision to apply fines to the joint stock company “Baltic International Bank” and Ilona Guļčaka, the Chair of the Board, in the amount of EUR 1 100 000 and EUR 25 000, respectively. During inspections of “Baltic International Bank” the FCMC had identified repeated violations of the provisions of the Law on the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and of Terrorist Financing (AML/CTF) and Regulations on Customer Due Diligence, getting involved in transactions that subject the bank to material money laundering and reputational risks.
The bank had failed to pay particular attention to complex, mutually linked transactions performed by customers, had not identified the origin of funding and timely detected suspicious rolling spot forex transaction schemes.
In view that the bank’s activities are focused on foreign markets that may likely subject them to the increased money laundering and terrorist financing risks, the FCMC emphasizes the significance of providing adequate customer due diligence, supervision and efficient internal control system.