Banks turned Kaunas again into a Russian oligarch

Left without money

S. Kozlov told Kauno Day that he uses the services of Swedbank Bank and has opened an account in it. However, the school where he works is used by SEB Bank services. In April, SEB Bank suspended the remuneration of the salary because it supported it with the Russian oligarch, which is subject to European sanctions.

SEB just stopped the transfer and left Kaunas without money for four days. The bank applied to the school to revise the citizen’s data, so the school informed Mr Kozlov of the problems.

« The school had to send a copy of my passport to the bank. To explain that I am working for them, that I am a Lithuanian, not a Russian citizen. I allowed the school to send my passport data, even though I do not understand such procedures. Why, as a Lithuanian citizen, I have to prove that I am not a Russian citizen and sanctions unlawfully? The teacher did not hide the outrage.

Kaunas was also surprised that even when the school sent his personal data to the bank, SEB did not immediately block the transfer. For four days, the bank has checked that Mr Kozlov, who has been working in Kaunas and working as a teacher in Kaunas, is not the same S. Kozlov, who lives in Russia and is subject to EU sanctions. According to the man, such inspections should be carried out in a hurry.

« Not because of my guilt, the transfer was stopped. Here their systems work poorly. People plan expenditure, so for four days to check the data – absurd, » Kozlov believes.

Problems – more

Kaunas said that with the Luminor bank, there are also problems. A friend tried to transfer several euros from his Luminor account to the S. Kozlov Swedbank account and that payment was also suspended.

« I don’t want to deal with this bank at all. No one seems to work there, » Kozlov said.

The man claimed that when sending goods from abroad and using the DHL services of parcel transport, he also had to send personal data additional. « The parcel was paused, the DHL company asked my passport, but it looked at everything very quickly, maybe 15 minutes took a while, and everything was fine again. Other couriers did not ask for data, » the teacher said.

Not the first time

Interestingly, the Kaunas resident S. Kozlov is not screwed into the sanction spin for the first time. About a year and a half ago, the man also had to prove to the banks that he had been unlawfully imposed and restricted access to the Internet banking services.

This time the man could not pay for the hairdresser services. Both payments from schools and simple several euros transfers to colleagues were suspended. Banks immediately explained that Mr Kozlov is on the list of sanctioned persons, so the money cannot be transferred to the recipient specified.

« Please be informed that Sergej Kozlov is rejected and will not be rejected by the recipient of EUR 12, as no answers to our questions were provided. The bank rejects and fails to make payments, does not provide financial services or other transactions if there are reasonable doubts that

Moreover, a few years ago a Kaunas colleague was also turned into a banking spin of the banking bureaucracy. The bank had then blocked and did not allow her account to transfer money on the grounds that she was cooperating with the sanctioned persons.

« In order to fully ensure the implementation of international sanctions and not to participate in actions aimed at directly or indirectly to avoid international sanctions, the bank does not provide bank products and services to customers whose partners are sanctioned entities and are subject to targeted assets, » the bank commented.

Then Kozlov had to prove to various banks that he was a Lithuanian citizen. Some banks handled the systems, others imposed sanctions again in a few months. Now, a half -year -old Kaunas resident lived calmly until he received a salary again due to his fellowship. The man wonders that everyone will have to prove again that he must not be subject to EU sanctions.

« I do not understand the banking system. It was calm, now the transfers are stopped again. There is no common register or any system where all financial institutions in the country can see what is sanctioned and what’s just another bank. – The actions of the banks consider the absurd S. Kozlov.

Sanctions: SEB Kaunas frozen an altation order to Kaunas because he supported him with an sanctioned Russian oligarch. / Photo by Regimantas Zakšensk

Banking position

Kauno diena asked SEB Bank why the Lithuanian was imposed on a Lithuanian sanction, a suspended remuneration was suspended if he had previously argued that he was not a Russian citizen.

« We understand that the situation may cause a person to cause discomfort. However, money laundering and terrorism prevention legislation, EU international sanctions and other legislation obliges banks to carry out client cognitive procedures and operations.

With this in mind, customers whose names coincide with the sanctions lists are always recommended to indicate as much information as possible in the payment order, it is recommended to provide as detailed information as possible, as well as to be prepared for a separate financial and credit institution request to provide additional data, ”said Leontina Lesauskaitė.

However, there are unanswered questions about whether the banks themselves are not communicating with each other and cannot find out whether the client is a Lithuanian citizen, and that third parties, in this case the school, send personal data to the bank. It is also unclear what SEB is going to do so that such situations do not happen again in the future.

The Lithuanian Banks Association also stated that a reliable and smooth -functioning financial system is important to everyone, so that payments need to be provided as detailed as possible and, if necessary, provide additional data.

« Customer’s cognitive procedures and operations monitoring banks are obliged by money laundering and terrorism prevention, other legal acts and international sanctions. Each bank is individually responsible for these processes, so the specific monitoring criteria and practices are determined individually by financial and credit institutions.

In accordance with applicable laws, all natural and legal persons must comply with international sanctions in the Republic of Lithuania. We are sorry for the situation and inconvenience, but the Lithuanian Banks Association does not comment on the relationship between its members and their specific clients, ”said Valerija Kiguolienė, communications manager at the Lithuanian Banks Association.

Why, as a Lithuanian citizen, I have to prove that I am not a Russian citizen and sanctions imposed on me illegally?

Have to take care of yourself

The Financial Crime Investigation Service (FCIS) is responsible for the list of sanctioned persons. The daily newspaper of Giedrimas Jeglinskas, Chairman of the National Security and Defense Committee of the Seimas and the Seimas Committee on National Security and Defense (NSGK), asked to comment on how to protect Lithuanian citizens from unlawfully imposed sanctions.

Both provided almost identical answers, the essence of which, the person himself must apply to the financial institutions and decide in person if the bank’s transfers have been suspended. There are dozens of financial institutions in Lithuania in Lithuania, so aren’t all Lithuanian citizens equated with Russian terrorists, oligarchs or other sanctioned persons to deliver their personal data?

« First of all, it should be noted that Lithuanian financial institutions are one of the sectors, which is particularly responsible for implementing sanctions, imposing resources and has implemented the relevant information systems due to the enormous number of operations that ensure daily implementation of sanctions.

« The situation described itself is partly known. The challenge usually arises when a person makes a payment to another natural or legal person’s account at another financial institution at one financial institution. The financial institution, which carries out payment monitoring, stops these funds for data overlap. In the case, the bank stops the funds and requests additional information to make sure that the sanctions are not violated, ”the FCIS specialists continued.

FNTT and G. Jeglinskas stated that in order to deal with such cases, it is advisable to apply to individuals to a particular financial institution and discuss the challenges and find a solution.

« This solution is also specified in the EU Council’s Document » The best experience of the EU on the effective implementation of restrictive measures « on 4 May 2018. It states that if a person or business entity whose funds or economic resources are frozen, declare that there is no one who is intended to apply restrictive measures, he should contact a financial institution where funds or economic resources have been frozen, ”the comment says.

In other words, the person’s own business is to report himself to financial institutions and ask him to transfer frozen money. The institutions do not intend to change the procedure, and the other procedure to compile the lists of sanctioned persons to minimize the suffering of Lithuanian citizens. There are no other ways to prove that a person is not the one who is actually imposed on sanctions.

Commentary on the Bank of Lithuania

Why the Kaunas resident was again included in your list should be asked by specific banks.

In general, if the client’s name coincides with the name of the sanctioned person, the banks must make sure that their client is not subject to sanctions. They may ask for identity documents, other information to confirm that the client does not impose sanctions. They have to do so expeditiously, clearly naming what needs to be submitted. If the customer’s request is unclear, he may apply to the banks an additional explanation.

If, in the client’s opinion, his rights are violated, he may apply to the Bank of Lithuania with a complaint or dispute.