NBU fines Ukreximbank and GlobalMoney UAH 3.5 and 10 million respectively

The National Bank of Ukraine has fined Ukreximbank and GlobalMoney UAH 3.5 million and UAH 10 million, respectively. These steps were taken to ensure compliance with the legislation on preventing and combating money laundering, terrorist financing and proliferation of weapons of mass destruction, as well as with the requirements of currency legislation.

According to the NBU, these measures were applied to four banks and 17 non-bank financial institutions. One of the banks, Concord, lost its banking license and was liquidated due to systematic violations of anti-money laundering legislation, in particular, due to the lack of a proper risk management system. Over the past two years, the NBU has imposed fines of UAH 60.4 million on this bank.

Ukreximbank received two fines in the amount of UAH 3.051 million and UAH 400 thousand. The first fine related to violations in customer due diligence and insufficient implementation of enhanced due diligence of high-risk customers, as well as improper use of a risk-based approach and failure to establish certain processes in the financial monitoring system. The second fine was assessed for violation of currency legislation.

MTB Bank was fined UAH 1 million for failing to provide information on foreign exchange transactions to the regulator on time and in full.

The first Ukrainian international bank received a written warning due to improper development and implementation of anti-money laundering documents, insufficient efficiency of the risk management system and provision of inaccurate information on currency transactions at the NBU's request.

GlobalMoney, an international payment system, received a fine of UAH 10.08 million for failing to ensure the proper organization and conduct of initial financial monitoring.

Several other financial institutions, including Finod, a network of currency exchangers, also received fines and warnings for violations of various aspects of financial regulation.