“Ukrsotsbank” was fined for more than 1 billion UAH of cash without proper verification of customers ‘ operations.
NBU fined “Ukrsotsbank” / photo NBU

The national Bank of Ukraine on the results of inspections on issues of financial monitoring in November of this year fined “Ukrsotsbank” 30.45 million UAH for conducting of financial transactions of cash funds in the amount of over UAH 1 billion on the basis of documentation with signs of fictitiousness or even without any supporting documents from client accounts.

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As reported on the website of the NBU, the regulator sent “Ukrsotsbank” written warning for violation of requirements on identification, verification and study of the Bank’s customers, public officials, their relatives or associated persons; for not ensuring the detection of financial transactions subject to compulsory financial monitoring; violation of the procedure of suspension of financial transactions; for failure to comply with the obligation to refuse to conduct a financial transaction; for violation of registration procedure of financial transactions, as well as for violation of the order of submission of the specially authorized body of information.

Also on the website of the regulator reported that, in addition to “Ukrsotsbank”, Bank fined “Misto Bank” by 4.23 million UAH that accompanied the operation, according to which in the short term to the Bank’s customers were regularly removed from their accounts the amounts that are ten times higher than the amount of the declared income and also transaction from the client’s account in favour of legal entities with signs of fictitiousness of funds for the purchase and sale of securities, issuers of which appear in criminal proceedings as issuers of “junk” securities, the cost of which “artificially” inflated by tens of times.

Also, “Misto Bank”” received a written warning for not providing detection of financial transactions subject to financial monitoring.

It is reported that in November, a “Raiffeisen Bank Aval” received from the NBU a written warning for failure to comply with the obligation to perform initial financial monitoring financial transactions to which parties are national public figures, their related parties or associated entities.

As UNIAN reported earlier, the national Bank on the results of inspections on issues of financial monitoring in January-June 2018 applied penalties to ten banks.

In January of 2016 holding company ABH Holdings S. A., which owns “Alfa-Bank” signed an agreement with Italian banking group UniCredit Group on the purchase of 99,9% of actions “Ukrsotsbank” and in the end of October 2016, the parties announced the completion of the transaction.