Pro IQRA News Updates.
In June 2022, monitoring results in the field of preventing and countering money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction by banks and non-banking financial institutions. After analyzing, as well as the results of currency monitoring, the National Bank of Ukraine decided to punish JSC “AKB” Concord by issuing a fine of 60.4 million UAH as well as a written warning. This information can be found in the official message of the NBU. Interestingly, this is one of the largest fines ever imposed on Ukrainian banks for similar charges.
The NBU clarifies that Concord Bank has violated paragraph 2, part 2, article 6 of the Law of Ukraine “On preventing and combating the legalization (laundering) of proceeds of crime, terrorism.” Financing of and Financing of Weapons of Mass Destruction.” October 14, 2014, No. 1702-VII1, which covers improper performance of consumer due diligence procedures.
Concord Bank management partially admitted to these violations.
“Talking about the NBU’s monitoring measures, ConcordBank has to confirm that several of these violations have occurred. Also, all necessary measures will be taken to prevent similar situations in the future. In particular, the Bank has already made recommendations for amendments to the Bank’s internal regulations on financial supervision related to the automation of the process of studying customer activities and the organization of the internal banking system and the conduct of basic financial processes. taken into account. supervision,” a bank representative said in a statement. The Bank also reserves the right to defend its position in court.
In 2018, ConcordBank was already fined by the NBU in the amount of 1.55 million UAH. The bank tried to challenge the fine in court, but the case was withdrawn after the bank’s management and shareholders admitted to the violations.
Igor Bereza, head of the NBU’s financial supervision department, commented on the fines and warnings to the bank as follows: “Our main position is that we do not impose fines for minor or formal violations that are common to ordinary consumers. are concerned about,” says Briza. . “If the National Bank imposes sanctions, it means that the bank is involved in a large-scale scheme related to money laundering or terrorist financing.”
Already in autumn 2021, Concord Bank was involved in a suspicious story about US sanctions, cyber extortionists, and online drug trafficking. At the time, the bank’s management and shareholders denied all the allegations. However, it is learned that the investigation is still going on.
Despite repeated violations of Ukrainian legislation on preventing and preventing the legalization (laundering) of crime, terrorist financing, and the financing of weapons of mass destruction, Visa and MasterCard payments There was no response. systems, which fully support all ConcordBank operations and products.
British and European journalists are working with the Organized Crime and Corruption Reporting Project (OCCRP) to investigate money laundering. They have already sent several requests to the administration of the Visa and Mastercard payment systems (to their Ukrainian and central offices), including the Department for Money Laundering (AML) for more information on cooperation with Concord Bank.
The following questions were sent to the management of these payment systems: Do they regularly perform AML checks of Concord Bank funds? Have there been any serious breaches of financial supervision of this bank in recent years?
However, despite the passage of a couple of weeks, the journalists’ questions were not answered. All their official requests were ignored. According to foreign journalists and market experts, such silence and lack of action may indicate a corrupt relationship between the Visa and MasterCard payment systems and the management of ConcordBank.
ConcordBank, headquartered in Dnipro, was ranked 36th among 72 Ukrainian banks at the end of 2021 (with a total value of assets of UAH 5 billion). The ConcordBank Group includes the financial companies Cordpay, Mustpay, Procard, and Sincom, as well as British Electronic Payment Solutions LTD, and Moneycare Limited from Malta. The group is owned by Elena Susidka and Julia Susidka (56.2% and 43.8% shares respectively).