Following the direct supervision performed in 2019, the Croatian National Bank issued its Settlement proposal, declaring Zagrebačka banka d.d. (hereinafter: “the Bank”) liable to pay a total fine of HRK 33 million for certain breaches of the Anti-Money Laundering and Terrorism Financing Act (Official Gazette no. 108/17 and 39/19).
The breaches identified by the CNB relate to (i) identification and assessment of AML/CTF risk (ii) customer due diligence (iii) suspicious transactions monitoring and (iv) reporting of suspicious transactions.
The Bank accepted the CNB’s Settlement proposal which became final after the approval of the Financial Inspectorate of the Ministry of Finance of which the Bank was notified on 2 November 2020 . The Bank’s payment within 30 days from the approval results in an ultimate outflow of HRK 22 million already reflected in our 30 September 2020 financial statements.
The Bank has decisively addressed scheduled regulatory findings in close coordination with the authorities and remains strongly committed to continuously strengthen systems and processes. The full set of measures (75) identified by the Bank and accepted by the CNB in its Resolution have been fully implemented 3 months ahead of CNB’s schedule.
Improvements were made in the area of internal acts, information system and support tools, employee training and internal control system at all three lines of defence in the domain of AML Governance & Culture, risk identification and assessment, implementation of customer due diligence measures and monitoring of transactions and reporting on the same.