Estonian Bank to Challenge Fine for Sanctions Violations

Estonian Bank LHV Pank said it plans to contest in court a $322,000 fine by the Estonian Financial Intelligence Unit for violating Estonia's International Sanctions Act."LHV Pank does not agree with the FIU’s resolution and plans to contest it in court," the bank said. "LHV Pank takes regulatory compliance very seriously and has put in place all necessary solutions to meet all due diligence obligations related to financial sanctions."

The bank said the fine stems from two alleged violations in 2022, in which FIU said "LHV Pank should have applied due diligence measures more rigorously," and one alleged violation in January 2023, in which "LHV Pank notified the FIU belatedly of identifying a transaction violating financial sanctions and applying sanctions." The Estonian authority said the "shortcomings arose from negligence," LHV Pank said.