LHV Pank to contest the fine decision by Estonian Financial Intelligence Unit
May 06 2024 - 2:50AM
LHV Pank to contest the fine decision by Estonian Financial
Intelligence Unit
Estonian Financial Intelligence Unit (FIU) has conducted a
misdemeanour proceeding against AS LHV Pank resulting in a
conclusion that the bank has violated the International Sanction
Act and a fine decision of EUR 300,000. LHV Pank does not agree
with the FIU’s resolution and plans to contest it in court.
The FIU’s proceeding concerned two episodes in 2022, in which,
according to the FIU, LHV Pank should have applied due diligence
measures more rigorously; and one episode in January 2023, in which
according to the decision, LHV Pank notified the FIU belatedly of
identifying a transaction violating financial sanctions and
applying sanctions. According to the FIU, the shortcomings arose
from negligence.
LHV Pank takes regulatory compliance very seriously and has put
in place all necessary solutions to meet all due diligence
obligations related to financial sanctions.
LHV Group is the largest domestic financial group and capital
provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV
Varahaldus, LHV Kindlustus, and LHV Bank Limited. LHV employs more
than 1,090 people. As at the end of March, LHV’s banking services
are being used by 428,000 clients, the pension funds managed by LHV
have 120,000 active clients, and LHV Kindlustus protects a total of
164,000 clients. LHV Bank, a subsidiary of LHV Group, holds a
banking licence in the UK and provides banking services to
international financial technology companies, as well as loans to
small and medium-sized enterprises.
Priit RumCommunications ManagerPhone: +372 502 0786Email:
priit.rum@lhv.ee