Lombard Bank Malta plc - Administrative Penalty

On 30 October 2020, Lombard Bank Malta plc announced that the Financial Intelligence Analysis Unit (“FIAU”) informed the bank that it imposed an administrative penalty on Lombard for breaches in certain Anti-Money Laundering/Combating the Financing of Terrorism (“AML/CFT”) obligations. The findings were noted by the FIAU during an inspection carried out in September/October 2019 and whilst they were of an administrative nature, they did not relate to suspicions or evidence of money laundering.

Lombard explained that it will be appealing against the penalty as it has always been, and remains, committed to prevent the use of its services for any form of illicit activity. Lombard highlighted that as a matter of policy, it does not enter into business relations with those involved in sectors considered to carry inherent AML/CFT risk. Furthermore, as it continues to strengthen its defences in this area, the investments in technical and human resources continue unabated with a view of further minimising the potential for financial crime.

Lombard concluded by observing that in its 50-year history, it has built a reputation as an upright and trustworthy institution based on traditional relationship banking inspired by sound principles and best-practice standards. As it is determined to avoid anything that might jeopardise this hard-earned reputation, Lombard reaffirmed its policy of zero-tolerance even in cases that suggest the slightest hint of improper conduct and continues to rely on the integrity, professionalism and dedication of its staff members.