Due to the war and its consequences, most commercial banks have been forced to violate certain financial monitoring requirements
Due to the war and its consequences, most commercial banks have been forced to violate certain financial monitoring requirements.
This was told by Tetiana Putintseva, Chair of the Management Board of Joint-Stock Company «Commercial Industrial Bank» (COMINBANK).
“Without a doubt, the speed of transactions could truly save the lives of hundreds of people. Of course, in conditions of an aggressive war, each financial institution was aware of the consequences of forced violations, for example, due to the inability to promptly clarify the origin of the transferred funds. No one concealed such violations; they were public”, - told the expert.
She noted that the main reasons for the imposition of fines by the State Service of Financial Monitoring of Ukraine on commercial banks are: 1) improper verification of clients, 2) improper fulfillment of the obligation to manage risks related to the introduction or use of new and existing information products, business practices, or technologies, etc., 3) untimely notification of the measures taken for financial monitoring.
The expert believes that in the near future it should be expected that 2/3 of commercial banks may fall under the NBU's penalty sanctions in the amount of several hundred thousand to several million hryvnias depending on the specifics of the violations. However, such penalty sanctions are unlikely to lead to any negative consequences for any particular bank.
“In the last few months, the main issue of the viability of commercial banks has been the significant growth of the NBU discount rate, rather than the penalty sanctions of the Financial Monitoring. However, as of the end of September, it can be said that more than half of commercial banks have already managed to repay up to 50% of the volume of funds attracted from the NBU, avoiding entirely possible bankruptcies”, - summarized Tetiana Putintseva, Chair of the Management Board of JSC “CIB”.
