With reference to the published information on the instances of violation of compliance functions, which are connected with some of the Latvian banks (among which Norvik Banka has been mentioned, as well), it should be noted that Norvik Banka is constantly improving its control mechanism in order to identify and manage possible risks in due time and to prevent any illegal activity.
At the same time, Norvik Banka informs that it has paid a fine of 1 324 667 EUR imposed by the Financial and Capital Market Commission.
Oliver Bramwell, Chairman of the Board of Norvik Banka: “The bank, in close cooperation with the Commission, has reviewed its client portfolio, developed a very concrete corrective action plan, and will be investing upwards of 2 million euro over the coming 18 months in ensuring compliance with all regulatory and best practice requirements”.
Norvik Banka has implemented and continues to implement a set of measures in compliance with the amendments made to the Latvian laws and regulations in 2016 that govern the prevention of money laundering and terrorism financing [AML] and have a positive impact on the mitigation of systematic risk in the non-resident client and transactional business lines.
Norvik Banka underwent an independent AML audit conducted by the US company Navigant Consulting Inc. The results of this audit were received in August 2016; the bank was rated highly in terms of its AML culture, training and competence of the team, as well as internal audit. Navigant Consulting Inc in its report has acknowledged that the Board has sufficient oversight over the bank’s AML program, participates in implementation efforts, oversees process execution, and ensures that the comprehensive AML program is, above all, sustainable.
The bank has been working systematically on parting with high-risk clients and takes all reasonable steps to strengthen its compliance functions in accordance with the highest international standards. At the end of the year, the bank is to undergo a follow-up US AML audit.
At the same time, changes in the composition of the Council and the Board of Directors of the bank that took place at the end of 2013 were one of the factors that strengthened the procedures and the policy aimed at improving of the compliance function in full respect of the highest international standards.