December 11 2015
The Board of Financial and Capital Market Commission (FCMC) decided to apply a fine of 2 016 830 euro to AS “PrivatBank” for violation of the provisions of the Law on the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and of Terrorist Financing (AML/CFT), Credit Institution Law, as well as Regulation on Establishment of the Internal Control Framework and Regulations on Customer Due Diligence. Having assessed responsibility of relevant officials for above infringements, FCMC has suspended Chairman of the Board, Oleksandr Trubakov, and Board member Iveta Ķerpe from their duties, as well as requested to fully replace the Bank’s Board.
This is part of findings of investigation into transactions, conducted from 2012 to 2014, mentioned in the Kroll report released by the Moldovan National Bank. Deficiencies in customer due diligence and documenting information were identified during the probe, as well as monitoring of customer transactions, as the Bank had failed to identify several transactions as potentially suspicious and had not reported them to the Office for Prevention of Laundering of Proceeds Derived from Criminal Activity (Control Service).