Ukrgasbank and Four Other Financial Institutions Fined by NBU: Largest Exceeds 30 Million UAH

The National Bank of Ukraine imposed penalties in August on one bank and four non-bank financial institutions for violating financial monitoring legislation. In particular, Ukrgasbank was fined 17.6 million UAH, while the largest fine among non-bank institutions was imposed on the insurance company "USG" --- over 30.7 million UAH.

This was reported by Dilo, citing a statement from the NBU press service.

NBU Fines in August

• AB "Ukrgasbank" fined 17.6 million UAH
  The National Bank fined Ukrgasbank 17.6 million UAH for a number of violations of financial monitoring legislation.

In particular, the bank improperly applied a risk-oriented approach in its activities. Additionally, Ukrgasbank did not take the necessary measures regarding clients with whom business relationships were established before the relevant changes to financial monitoring requirements came into effect.

Furthermore, the NBU established that the bank conducted client checks improperly. This specifically refers to non-compliance with due diligence requirements and enhanced measures for checking high-risk clients.

Another violation was Ukrgasbank's failure to timely and fully provide the National Bank with accurate information and documents upon request. These materials are necessary for the regulator to carry out oversight in the area of financial monitoring and to verify compliance with the relevant legislation.

Insurance Company "USG" -- fined 30.8 million UAH.
The National Bank fined the insurance company "USG" 30.8 million UAH for improper organization and conduct of initial financial monitoring.

In particular, the company inadequately updated its internal documents on financial monitoring, conducted client checks improperly, and applied a risk-oriented approach.

The NBU also found violations during the checks of clients who are politically exposed persons (PEPs), as well as improper provision of requested information and documents to the regulator. Additionally, the company did not provide an updated list of clients with a qualified electronic signature from the director in the established manner.

Separately, the NBU issued a written reservation to "USG" for violating statistical reporting rules. The company submitted reports on financial monitoring issues in violation of the procedure for forming its indicators.

• LLC "Max Credit" -- fined 1.08 million UAH
  The NBU fined "Max Credit" 1,084,198.34 UAH for improper organization and conduct of initial financial monitoring.

Among the identified violations:

• the company did not timely update its internal documents on financial monitoring;

• it conducted client checks incorrectly;

• it did not provide the NBU with an updated list of clients, certified by a qualified electronic signature from the director, upon request;

• it did not fully provide the regulator with the necessary information and documents;

• the responsible employee incorrectly informed the management about issues in the area of financial monitoring.

• LLC "FC Goal" -- fined 391 thousand UAH
  The financial company "Goal" received a fine of 391 thousand UAH from the NBU for a number of violations of financial monitoring requirements.

In particular:

• the company did not fully provide the NBU with the requested information and documents;

• it inadequately updated its internal documents on financial monitoring;

• it did not ensure proper control over the compliance of the responsible employee with established requirements;

• the responsible employee inadequately informed the management about financial monitoring issues;

• the company did not properly conduct internal checks for compliance with requirements;

• it did not provide a report on the results of the internal check within the established time frame;

• it inadequately applied a risk-oriented approach;

• it submitted statistical reports with violations and did not comply with the established procedure for correcting errors in them.

• JSC "Zaporizhzhia Communication Service" - fined 255 thousand UAH
  The NBU fined "Zaporizhzhia Communication Service" 255 thousand UAH for violating financial monitoring requirements.

The regulator established that the company:

• improperly developed and implemented internal documents and procedures for financial monitoring;
• did not ensure proper client checks;
• inadequately applied a risk-oriented approach in its activities.

Let us remind you that the National Bank of Ukraine fined the payment platform iPay 16.51 million UAH for violating payment services legislation. The regulator specifically found inadequate quality control and sufficiency of information accompanying payment transactions.

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