FIN-FSA imposes a penalty payment and a public warning on POP Bank Centre coop

The FIN-FSA has imposed a penalty payment of EUR 680,000 on POP Bank Centre coop for shortcomings in risk management systems and procedures and deficiencies in the amalgamation’s operational risks management. POP Bank Centre coop has not had effective and reliable control and supervision arrangements in place for identifying, managing, mitigating, monitoring and reporting operational risks inherent in the amalgamation’s activities. The omissions that led to the imposition of a penalty payment concern several obligations under risk management regulation.

A public warning was imposed because POP Bank Centre coop has neglected its obligation to control the amalgamation’s operations and because it has not provided the amalgamation’s member cooperative banks with sufficient instructions for the management of their operational risks. The omissions that led to the imposition of a public warning also concern deficiencies in the amalgamation’s management and internal control and the supervision of its member cooperative banks.

The omissions were detected during an inspection conducted by the FIN-FSA in April 2019 with the aim of ascertaining whether the management of POP amalgamation’s operational risks has been arranged in a reliable manner. The inspection focused on information systems, processes, documentation, division of responsibilities and reporting related to operational risk management.

The penalty payment is payable to the State.

The FIN-FSA’s decision is not yet legally binding. POP Bank Centre coop has the right to appeal the decision to the Helsinki Administrative Court within 30 days of receipt of notice of said decision.

Appendix

FIN-FSA decision: POP Bank Centre coop (pdf, in Finnish)

See also

Administrative sanctions
Supervisory measures