Based on Signet Bank’s application to appeal the decision adopted on 14 July 2020 by the Board of the Financial and Capital Market Commission (FCMC) – to apply a fine for shortcomings in compliance with the anti-money laundering and counter terrorism and proliferation financing (AML) regulatory requirements, in particular – for inadequacies identified in the internal control system, the FCMC re-heard Signet Bank AS, assessed the situation and took note of the progress made in addressing the shortcomings identified. Considering the findings of the assessment and the fact that Signet Bank AS is open to cooperation and has already eliminated most of the deficiencies, the FCMC concluded an administrative agreement with the bank on 23 February, significantly reducing the initially imposed fine from EUR 906,610 to EUR 583,963.
The inspection, which revealed shortcomings in the bank’s internal control system, was carried out by the Financial and Capital Market Commission at the end of 2018. The bank has since ensured even more effective compliance with the regulatory requirements.
We highly appreciate our cooperation with the FCMC and the constructive dialogue in resolving this situation. Signet Bank continuously invests in the development of information technologies, processes and human resources to ensure that risk management and control mechanisms are consistent with our business model. The FCMC’s decision confirms the responsible approach that Signet Bank takes in compliance with regulations and endorses our principles of operation aimed at openness and cooperation.”
Roberts Idelsons, Chairman of the Management Board at Signet Bank
Over the past two years, Signet Bank has transformed its business model, significantly reducing the business volume of services to foreign customers and the associated risks. Currently, the bank is successfully developing its strategy, which is based on services to local private and corporate clients, sustainable financial solutions, and a developed compliance culture. Signet Bank Group ended 2020 with an unaudited profit of EUR 1.85 million, with total income increasing by 60% over the past 2 years.
Currently, the regulator and the bank have a common understanding of shortcomings. Signet Bank will continue to responsibly ensure compliance with the regulatory requirements on the merits in order to effectively manage the risks of money laundering.
The conclusion of the administrative agreement cancels the decision adopted by the FCMC on 14 July 2020.
The bank was founded in 1992 as Latvijas Biznesa banka. Since 2013, it has focused its strategy on servicing entrepreneurs and their businesses, with an emphasis on high-quality capital maintenance and structured investment projects. Signet Bank’s majority shareholders are a group of Latvian and international investors, which includes SIA Hansalink, SIA Fin.lv, and Signet Acquisition III.