TALLINN – The Estonian Financial Supervision Authority (FSA) said on Thursday it is conducting a misdemeanor proceeding with regard to Luminor Bank to look into significant malfunctions in the operation of Luminor's internet bank.
Spokespeople for the FSA said the agency will provide more detailed information on the misdemeanor procedure in the near future, when a decision has been made. Violations that are related to the correct and accurate display of customers' account balance in the online bank are always serious, the FSA said.
"The banking sector is built on trust. If a bank fails to display the correct amount of money in a customer's account for several days in a row, the bank has breached that trust. Such a situation has led the Financial Supervision Authority to open misdemeanor proceedings with regard to the bank and may result in a penalty if the facts are proven," said Siim Tammer, member of the board of the FSA.
The Estonian Consumer Protection and Technical Regulatory Authority (TTJA) announced earlier on Thursday that it initiated a supervisory procedure with regard to Luminor Bank AS in October 2022 in relation to malfunctions in the operation of internet banking services, which affected the quality of the basic payment service provided to consumers.
In the framework of the supervisory procedure, the TTJA has asked Luminor Bank for clarifications. The TTJA also has met with representatives of Luminor Bank to discuss possible solutions to ensure the quality of the online banking service. At present, the bank's focus is fully centered on ensuring full stability of IT, through making further investments, strengthening teams and leadership, such as by allocating additional resources, and enhanced cooperation with partners, the agency said.
According to the TTJA, credit institutions must ensure that consumers have access to basic payment services and provide the possibility to use modern electronic payment options in internet banking. In the event of a breach of the requirements of the payment service contract, the competent supervisory authority is entitled to issue an injunction and to order the cessation of the infringement and the prevention of further infringement, as well as to bring a collective action to a court in order to end the infringement.
Please enter your username and password.
2024 © The Baltic Times /Cookies Policy
