Bank of Lithuania imposed a €350,000 fine on Luminor Bank
Topics: LITHUANIA LUMINOR BANK
The Bank of Lithuania has established that Luminor Bank AS failed to fulfil one of its key obligations as a payment service provider by not ensuring its customers’ right to dispose of the funds in their own accounts. In one of the incidents, the commercial bank executed 772 unauthorised payment transactions (duplicates) amounting for more than €1 million.
After they were identified, the bank failed to take appropriate measures to solve the issue – most of the affected customers were not refunded by the end of the next business day, as it is stipulated in the Republic of Lithuania Law on Payments. For this infringement, the commercial bank was imposed a €150,000 fine.
Another fine totalling €100,000 was issued for improper communication by Luminor Bank AS with its customers regarding the established incidents and failure to provide them with all relevant information.
Such behaviour had certain repercussions: at least 5,500 customers who unsuccessfully tried to use their mobile signature were completely denied access to the online banking, yet Luminor Bank AS failed to explain the situation and take timely measures to solve this issue. For this violation, the bank was issued a €100,000 fine. ■