The Financial and Capital Market Commission (FCMC) Council has decided to impose a fine of € 25,000 on the payment institution SIA Semfopay, as well as to impose a number of legal obligations, including the temporary suspension of the activities of the payment institution and the recall of two board members.
The FCMC stated that the decision was based on repeated violations of the Law Preventing the Laundering of Proceeds from Crime and the Financing of Terrorism and the related normative acts of SIA Semfopay. Semfopay had not set up an operational risk-based internal control system in the field of money laundering, which would ensure effective compliance with the relevant requirements.
Semfopay did not track transactions properly and investigated customers to ensure that customer transactions were not considered suspicious.
The decision of the FCMC Council stipulates that payment services from SIA Semfopay are suspended from 23 August. The payment institution is not authorized to accept customer and external funds on behalf of third parties, but funds received on behalf of its customers on 23 August can only be transferred to customer accounts in credit institutions. The FCMC has imposed a legal obligation on SIA Semfopay to immediately inform customers and partners about the termination of the service.
The FCMC promises to keep the interests of the customers of the payment institution and they are protected and protected.
According to the decision of the FCMC, SIA Semfopay was obliged to remove Gunti Zalīti from the position of the member of the Board of Directors, as well as a member of the Board of Directors who supervises the prevention of money laundering, who simultaneously controls the employee is in compliance with the legal requirements of the company, Andrejs Gailis. Accordingly, new members of the board and a staff member responsible for meeting the requirements of the money laundering law must be appointed.
In addition to this SIA, Semfopay must submit a business plan, the internal policies and procedures of the company that complements it, and the risk assessment of money laundering inherent in the type of activity, services provided and customer base.