BlueOrange informs on the administrative agreement concluded between FCMC and the Bank
December 21, 2018
AS BlueOrange Bank and the Financial and Capital Market Commission (FCMC) have signed a settlement agreement, thus closing the administrative procedure.
In accordance with the concluded administrative agreement, the Bank has acknowledged the shortcomings and committed itself to perform within the prescribed period a number of measures to improve the internal control system as regards monitoring of customer transactions.
In recent years, the legislative requirements and regulations in this area have been continuously supplemented, and increased significantly. The discrepancies found by the FCMC in no way indicate possible unlawful actions of any customers of the Bank. The main observations made by the FCMC refer to the monitoring of transactions of international clients for the period until 2017, and which were identified during the planned audit conducted by the FCMC last year.
Over the past year, the Bank has eliminated all major shortcomings, improved internal processes and introduced a new approach to determining client risk, as well as invested over 600 thousand euros in additional IT systems, which allowed to improve the efficiency of client transaction monitoring. The Bank’s internal control system is now enhanced to comply with current international standards.
In early 2017, the Bank changed its business model, introduced substantial changes to the business strategy and significantly increased its share in the Latvian market, having chosen services and lending to domestic businesses and individuals as its priority axis. Over the past year, the Bank has supported the national economy by providing loans worth more than 100 million euros. As a result of the Bank’s transition to a new business model, there have also been qualitative changes to the customer profile – over the past two years the Bank has considerably reduced the number of clients from high-risk regions, while the number of domestic clients has increased.
In 2019, the Bank plans to complete the initiated processes as regards transformation of its business model and will continue to improve the internal control system for customer transactions.
AS BlueOrange Bank management
This press release has been prepared by the Public Relations and Communication Department