Malta’s Financial Intelligence Analysis Unit (FIAU) has found Lombard Bank Malta plc to be deficient in several key AML/CFT areas and in violation of many regulations under the Prevention of Money Laundering and Funding of Terrorism Regulations (PMLFTR). As a result, the authority has levied an administrative penalty of €340,058 ($396,236) on the bank.
The FIAU’s Compliance Monitoring Committee (CMC) found that Lombard Bank lacked knowledge of the vulnerability of its operations to ML/TF. Consequently, the bank failed to perform and document an adequate ML/TF risk assessment. Moreover, the data collected from many clients did not adequately represent the purpose and nature of their business relationship. Even the internal reviews conducted by the bank were not documented consistently. Overall, the bank failed to monitor and scrutinize the transactions occurring through its customers’ accounts.
The CMC has taken some administrative measures to address the issues identified in this evaluation of Lombard Bank. In addition to the monetary penalty, the FIAU has issued a follow-up directive for the bank. This directive encourages the bank to execute steps to understand the risks associated with its operations and to implement measures to remediate such risks.
Source name: Financial Intelligence Analysis Unit (FIAU), Malta