Banking Supervision

Sanctions imposed by the Banco de España

Under the provisions of Art. 115.7 of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions, the Banco de España shall publish on its website the sanctions and reprimands imposed in relation to serious and very serious infringements within 15 working days from the date on which such sanctions and reprimands have become final pursuant to administrative proceedings. Where appropriate, and if it is so resolved, the identity of the person subject to the sanction or reprimand may remain confidential.

In compliance with this obligation, the following table includes a reference to the aforementioned sanctions and reprimands imposed by the Banco de España since the entry into force of Law 10/2014, referring to the appeals for judicial review, if any, lodged against the sanctioning resolution, and the outcome thereof.

Publication date Information on infringements and sanctions imposed Decision date Status
23/12/19

Fine imposed on Avalmadrid, a mutual guarantee company, amounting to ninety five thousand euro (€95,000), pursuant to Article 10(a) of Law 26/1988 of 29 July 1988 on the discipline and intervention of credit institutions (substantive rule on sanctioning proceedings, applicable in view of the time of the commission of the infringement), for the commission of a serious infringement, of the type defined in Article 5(r) of said Law 26/1988.

This infringement arose as the Entity failed to comply with a Banco de España requirement relating to internal control (risk concentration and monitoring).

22/10/19 Final decision
23/12/19

Fine imposed on the Chamber of Commerce, Industry and Services of Madrid, director of Avalmadrid, a mutual guarantee company, amounting to thirty eight thousand four hundred euro (€38,400) —after application of the reduction of 20% for voluntary payment established in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure—, pursuant to Article 13(1)(c) of Law 26/1988 of 29 July 1988 on the discipline and intervention of credit institutions (substantive rule on sanctioning proceedings, applicable in view of the time of the commission of the infringement), for the commission of a serious infringement, of the type defined in Article 5(r) of said Law 26/1988.

This infringement arose as the Entity failed to comply with a Banco de España requirement relating to internal control (risk concentration and monitoring).

22/10/19 Final decision
23/12/19

Fine imposed on Mr. Juan Pablo Lázaro Montero de Espinosa, director of Avalmadrid, a mutual guarantee company, amounting to ten thousand four hundred euro (€10,400)—after application of the reduction of 20% for voluntary payment established in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure—, pursuant to Article 13(1)(c) of Law 26/1988 of 29 July 1988 on the discipline and intervention of credit institutions (substantive rule on sanctioning proceedings, applicable in view of the time of the commission of the infringement), for the commission of a serious infringement, of the type defined in Article 5(r) of said Law 26/1988.

This infringement arose as the Entity failed to comply with a Banco de España requirement relating to internal control (risk concentration and monitoring).

22/10/19 Final administrative decision. Currently under cassation appeal before the Supreme Court
12/06/19

Fine imposed on Banco Santander, S.A., in its capacity as universal successor of Banco Popular Español, S.A., amounting to one million five hundred thousand euro (€1,500,000), pursuant to Article 10(a) of Law 26/1988 of 29 July 1988 on the discipline and intervention of credit institutions (substantive rule on sanction proceedings, applicable in view of the time of the commission of the infringement), for the commission of a serious infringement of the type defined in Article 5(e) of said Law 26/1988, consisting in the performance of actions or operations in breach of the rules issued under Article 29(2) of Law 2/2011 of 4 March 2011 on the sustainable economy.

This infringement was committed since breaches were detected of Ministerial Order 2899/2011 and of Banco de España Circular 5/2012 relating to: the provision to customers of pre-contractual and contractual information and the compulsory content of such information; calculation of APR; and the charging of commission for services not provided.

26/10/18 Final administrative decision. Currently under appeal before the courts
12/06/19

Fine imposed on Banco Santander, S.A., in its capacity as universal successor of Banco Popular Español, S.A., amounting to three million euro (€3,000,000), pursuant to Article 9(a) of Law 26/1988 of 29 July 1988 on the discipline and intervention of credit institutions (substantive rule on sanction proceedings, applicable in view of the time of the commission of the infringement), for the commission of a very serious infringement of the type defined in Article 4(e) of said Law 26/1988, consisting in the performance of actions or operations prohibited by regulatory and disciplinary provisions with the status of law or in non-compliance with the requirements laid down in those provisions , unless on a merely occasional or isolated basis.

This infringement was committed since breaches were detected of Laws 41/2007 and 44/2002 relating, respectively, to: the compensation and charges in the event of early repayment and the application of interest rate rounding clauses.

26/10/18 Final administrative decision. Currently under appeal before the courts
17/05/19

Fine imposed on Banco Santander, S.A. amounting to three million two hundred thousand euro (€3,200,000) — after application of the reduction of 20% for voluntary payment established in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure — pursuant to Article 10(a) of Law 26/1988 of 29 July 1988 on the discipline and intervention of credit institutions, (substantive rule on sanction proceedings, applicable in view of the time of the commission of the infringement), for the commission of a serious infringement of the type defined in Article 5(d) of said Law 26/1988, consisting in the performance on a merely occasional or isolated basis of actions or operations prohibited by regulatory and disciplinary provisions with the status of law, or in non-compliance with the requirements laid down in those provisions.

This infringement was committed since breaches were detected of Laws 41/2007, 2/1994 and 44/2002 relating, respectively, to: early repayment charges and compensation for bearing interest rate risk; novation charges in maturity extensions; and rounding of interest rates.

29/03/19 Final decision
17/05/19

Fine imposed on Banco Santander, S.A. amounting to three million two hundred thousand euro (€3,200,000) — after application of the reduction of 20% for voluntary payment established in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure — pursuant to Article 10(a) of Law 26/1988 of 29 July 1988 on the discipline and intervention of credit institutions, (substantive rule on sanction proceedings, applicable in view of the time of the commission of the infringement), for the commission of a serious infringement of the type defined in Article 5(e) of said Law 26/1988, consisting in the performance of actions or operations in breach of the rules issued under Article 29(2) of Law 2/2011 of 4 March 2011 on the sustainable economy.

This infringement was committed since breaches were detected of Ministerial Order 2899/2011 and of Banco de España Circular 5/2012, relating to: the provision of pre-contractual information; the content of settlement documents in early repayments in which interest rate risk compensation is charged; the debiting of fees in the novation of transactions; the calculation of the annual percentage rate (APR) included in the pre-contractual information and contractual documentation; and the content of the pre-contractual information on other costs included in the APR and in the total amount repayable.

29/03/19 Final decision
17/05/19

Fine imposed on Unicaja Banco, S.A. amounting to one million fifty thousand euro (€1,050,000) — after application of the reduction of 40% established in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure — pursuant to Article 9(a) of Law 26/1988 of 29 July 1988 on the discipline and intervention of credit institutions, (substantive rule on sanction proceedings, applicable in view of the time of the commission of the infringement), for the commission of a very serious infringement of the type defined in Article 4(e) of said Law 26/1988, consisting in the performance of actions or operations prohibited by regulatory and disciplinary provisions with the status of law or in non-compliance with the requirements laid down in those provisions.

This infringement was committed since breaches were detected of Article 7 of Law 41/2007 which prohibits charging fees for issuing bank documentation to provide evidence of loan repayment.

29/03/19 Final decision
17/05/19

Fine imposed on Unicaja Banco, S.A. amounting to four hundred and fifty thousand euro (€450,000) — after application of the reduction of 40% established in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure — pursuant to Article 10(a) of Law 26/1988 of 29 July 1988 on the discipline and intervention of credit institutions, (substantive rule on sanction proceedings, applicable in view of the time of the commission of the infringement), for the commission of a serious infringement of the type defined in Article 5(e) of said Law 26/1988, consisting in the performance of actions or operations in breach of the rules issued under Article 29(2) of Law 2/2011 of 4 March 2011 on the sustainable economy.

This infringement was committed since breaches were detected of Ministerial Order 2899/2011 and of Banco de España Circular 5/2012, relating to the provision of pre-contractual information and the content of such information and of contractual documentation, as well as to how the annual percentage rate (APR) is calculated in the pre-contractual and contractual documentation, given that all the arrangement costs charged to the borrower and the cost of the property insurance required for arranging the transaction are not included.

29/03/19 Final decision
30/04/19

Fine of twenty-four thousand euro (€24,000) imposed on Mr. Luis Alberto Gasparini, sole director of Euro Trading & Financial, S.A., (after application of a reduction of 40% provided for in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure) pursuant to Article 100(1)(a) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions, for the commission of a very serious infringement of the type defined in Article 7(3)(I)(b) of Royal Decree 2660/1998 of 14 December 1998 on the changing of foreign currency in establishments open to the public other than credit institutions, in conjunction with Article 92(g) of said Law 10/2014 and with Article 178(Three) of Law 13/1996 of 30 December 1996 on fiscal, administrative and social measures.

This infringement consisted of essential irregularities in the accounts of the Entity that prevent its financial position from being known.

27/02/19 Final decision
30/04/19

Fine of four thousand eight hundred euro (€4,800) imposed on Mr. Luis Alberto Gasparini, sole director of Euro Trading & Financial, S.A., (after application of a reduction of 40% provided for in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure) pursuant to Article 101(1)(a) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions, for the commission of a serious infringement of the type defined in Article 7(3)(II)(a) of Royal Decree 2660/1998 of 14 December 1998 on the changing of foreign currency in establishments open to the public other than credit institutions, in conjunction with Article 93(d) of said Law 10/2014 and with Article 178(Three) of Law 13/1996 of 30 December 1996 on fiscal, administrative and social measures.

This infringement consisted of the performance of transactions for the sale of foreign currency without the necessary prior authorisation.

27/02/19 Final decision
30/04/19

Fine of nine thousand euro (€9,000) imposed on Mr. Luis Alberto Gasparini, sole director of Euro Trading & Financial, S.A., (after application of a reduction of 40% provided for in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure) pursuant to Article 101(1)(a) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions, for the commission of a serious infringement of the type defined in Article 7(3)(II)(b) of Royal Decree 2660/1998 of 14 December 1998 on the changing of foreign currency in establishments open to the public other than credit institutions, in conjunction with Article 93(e) of said Law 10/2014 and with Article 178(Three) of Law 13/1996 of 30 December 1996 on fiscal, administrative and social measures.

This infringement consisted of non-compliance with the obligation to record transactions as stipulated by Banco de España Circular 6/2001 of 29 October 2001 on owners of currency-exchange bureaux.

27/02/19 Final decision
30/04/19

Fine of one hundred and twenty thousand euro (€120,000) imposed on Euro Trading & Financial, S.A. (after application of a reduction of 40% provided for in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure) pursuant to Article 97(1)(a)(2) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions, for the commission of a very serious infringement of the type defined in Article 7(3)(I)(b) of Royal Decree 2660/1998 of 14 December 1998 on the changing of foreign currency in establishments open to the public other than credit institutions, in conjunction with Article 92(g) of said Law 10/2014 and with Article 178(Three) of Law 13/1996 of 30 December 1996 on fiscal, administrative and social measures.

This infringement consisted of essential irregularities in the accounts of the Entity that prevent its financial position from being known.

27/02/19 Final decision
30/04/19

Fine of twenty-four thousand euro (€24,000) imposed on Euro Trading & Financial, S.A (after application of a reduction of 40% provided for in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure) pursuant to Article 98(1)(b)(2) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions, for the commission of a serious infringement of the type defined in Article 7(3)(II)(a) of Royal Decree 2660/1998 of 14 December 1998 on the changing of foreign currency in establishments open to the public other than credit institutions, in conjunction with Article 93(d) of said Law 10/2014 and with Article 178(Three) of Law 13/1996 of 30 December 1996 on fiscal, administrative and social measures.

This infringement consisted of the performance of transactions for the sale of foreign currency without the necessary prior authorisation.

27/02/19 Final decision
30/04/19

Fine of thirty-nine thousand euro (€39,000) imposed on Euro Trading & Financial, S.A. (after application of a reduction of 40% provided for in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure) pursuant to Article 98(1)(b)(2) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions, for the commission of a serious infringement of the type defined in Article 7(3)(II)(b) of Royal Decree 2660/1998 of 14 December 1998 on the changing of foreign currency in establishments open to the public other than credit institutions, in conjunction with Article 93(e) of said Law 10/2014 and with Article 178(Three) of Law 13/1996 of 30 December 1996 on fiscal, administrative and social measures.

This infringement consisted of non-compliance with the obligation to record transactions as stipulated by Banco de España Circular 6/2001 of 29 October 2001 on owners of currency-exchange bureaux.

27/02/19 Final decision
30/04/19

Fine of one hundred and seventy-four thousand euro (€174,000) imposed on Triodos Bank, N.V., Sucursal en España (after the application of a reduction of 40% provided for in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure) pursuant to Article 98(1)(a) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions, for the commission of a serious infringement of the type defined in Article 93(f) of said Law 10/2014.

This infringement consisted of non-compliance by the institution with the provisions of Ministerial Order 2899/2011 and Banco de España Circular 5/2012 relating to precontractual information provided to the customer on transaction expenses and costs and to the inclusion of such expenses and costs in the calculation of the annual percentage rate (APR).

27/02/19 Final decision
15/02/19

At its meeting on 27 November 2017, the Governing Council of the Banco de España resolved to impose on BEP Corporación Financiera, S.L.U. a fine of three hundred and eighty thousand euro (€380,000) for engaging, without authorisation, in 2014 and 2015, in activities legally restricted to payment institutions, which constitutes a very serious infringement (Article 4(4) of Law 16/2009 of 13 November 2009 on payment services, in conjunction with Article 92(a) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions).

27/11/17 Final decision
15/02/19

At its meeting on 27 November 2017, the Governing Council of the Banco de España resolved to impose on BEP Corporación Financiera, S.L.U. a fine of three hundred and seventy-five thousand euro (€375,000) for using, without authorisation, in 2014 and 2015, names that may only be used by credit institutions or other names that may lead to their being mistaken for them, which constitutes a very serious infringement (Article 92(a) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions).

27/11/17 Final decision
15/02/19

At its meeting on 27 November 2017, the Governing Council of the Banco de España resolved to impose on Ms María Nieves Artiles Pérez, sole director of BEP Corporación Financiera, S.L.U., a fine of forty thousand euro (€40,000) for engaging, without authorisation, in 2014 and 2015, in activities legally restricted to payment institutions, which constitutes a very serious infringement (Article 4(4) of Law 16/2009 of 13 November 2009 on payment services, in conjunction with Article 92(a) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions).

27/11/17 Final decision
15/02/19

At its meeting on 27 November 2017, the Governing Council of the Banco de España resolved to impose on Ms María Nieves Artiles Pérez, sole director of BEP Corporación Financiera, S.L.U., a fine of twenty-five thousand euro (€25,000) for using, without authorisation, in 2014 and 2015, names that may only be used by credit institutions or other names that may lead to their being  mistaken for them, which constitutes a very serious infringement (Article 92(a) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions).

27/11/17 Final decision
23/01/19

At its meeting on 21 December 2018, the Governing Council of the Banco de España agreed to impose on ABANCA CORPORACIÓN BANCARIA, S.A. a fine of three million euro (€3,000,000), after application of the reductions of 40% established in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure. The fine is for the commission of a serious infringement, consisting in the performance, from 1 January 2015 to 30 September 2016, of actions or operations in breach of Ministerial Order 2899/2011 and Banco de España Circular 5/2012. (Article 93(f) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions).

In the proceedings, proof was evidenced of several breaches relating to pre-contractual information provided to the customer in respect of costs and charges of the operation and the inclusion of these costs and charges in the calculation of the annual percentage rate (APR).

21/12/18 Final decision