LHV Pank to contest the fine decision by Estonian Financial Intelligence Unit

Estonian Financial Intelligence Unit (FIU) has conducted a misdemeanour proceeding against AS LHV Pank resulting in a conclusion that the bank has violated the International Sanction Act and a fine decision of EUR 300,000. LHV Pank does not agree with the FIU’s resolution and plans to contest it in court.

The FIU’s proceeding concerned two episodes in 2022, in which, according to the FIU, LHV Pank should have applied due diligence measures more rigorously; and one episode in January 2023, in which according to the decision, LHV Pank notified the FIU belatedly of identifying a transaction violating financial sanctions and applying sanctions. According to the FIU, the shortcomings arose from negligence.

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.

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. LHV employs more than 1,090 people. As at the end of March, LHV’s banking services are being used by 428,000 clients, the pension funds managed by LHV have 120,000 active clients, and LHV Kindlustus protects a total of 164,000 clients. LHV Bank, a subsidiary of LHV Group, holds a banking licence in the UK and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.

Priit Rum

Communications Manager

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