15/03/2021
Being able to impose administrative fines in the financial sector would make it possible to react faster and more appropriately to rule violations in the sector said Siim Tammer, Member of the Finantsinspektsioon Management Board at a seminar of the Chamber of Bailiffs and Trustees in Bankruptcy. It would allow higher fines to be imposed to discourage financial crime, and prevent cases being abandoned for reaching the statutory limit of time available.
“Estonia stands out badly in Europe for its low levels of punishment in the financial sector. We can fine companies in the financial sector 32,000 euros, or 400,000 euros in certain cases, but in some other countries the fines for the same crime can be many times higher”, said Mr Tammer.
Not only are the fines small, but the misdemeanour proceedings allow fines to be levied only through the individual person who violated the rules. This requires the financial supervisor to hear a number of witnesses, evaluate internal procedures and decisions, and link them to an act that has already taken place. By the time this is completed, the cases have often reached their time limit, and so there ends up being no punishment at all.
Finantsinspektsioon has argued for years that the punishments for the financial sector should use the administrative framework, which would allow financial sector companies to be fined using administrative proceedings.