Fines up to UAH 30.8 million: NBU punished the bank and four financial institutions

In August, the National Bank of Ukraine applied sanctions to one bank and four non-bank financial institutions. The reason was violations of legislation in the field of financial monitoring, customer due diligence and risk assessment. The total amount of fines exceeded UAH 50 million.

Who was fined by the National Bank

The list of institutions against which the NBU applied sanctions included:

JSC “Ukrgasbank” – UAH 17.6 million;
Insurance company “USG” – UAH 30.8 million;
LLC “Max Credit” – UAH 1.08 million;
LLC “FC “Goal”” – UAH 391 thousand;
PrJSC “Zaporizhzvyazokservice” – UAH 255 thousand.

The largest fine was received by the insurance company “USG”.

What was “USG” fined for

The fine in the amount of UAH 30.8 million is related to violations during the organization and conduct of primary financial monitoring.

The regulator, in particular, pointed out problems with updating internal documents, checking clients and applying a risk-based approach.

Certain shortcomings concerned work with politically exposed persons (PEPs), as well as providing information and documents at the National Bank’s requests. In addition to the fine, the company received a written warning regarding statistical reporting.

Ukrgasbank received a fine of UAH 17.6 million

Ukrgasbank JSC received the largest fine among banks within the framework of August decisions – UAH 17.6 million.

Among the violations established by the NBU are improper application of a risk-based approach and shortcomings during the verification of clients, in particular persons with a high level of risk in business relationships.

The regulator also pointed out improper fulfillment of the obligation to timely and fully provide reliable information and documents at the NBU’s requests.

What violations were found in other companies

Max Credit LLC was fined UAH 1.08 million. Among the regulator’s complaints are untimely updating of internal documents, shortcomings in customer verification and incomplete submission of documents to the National Bank.

LLC “FC “Goal”” received a fine of UAH 391 thousand due to shortcomings in internal control, provision of information and statistical reporting.

PrJSC “Zaporizhzvyazokservice” must pay UAH 255 thousand. The regulator identified problems with internal procedures, customer verification and the use of a risk-based approach.

What do fines mean for customers

The application of fines in itself does not mean the termination of the operation of a bank or non-bank financial institution.

At the same time, for customers, increased financial monitoring may mean more thorough checks of transactions and additional requests for documents, especially when carrying out transactions with a high level of risk.