Banking Supervision

Fine imposed on BANKOA, S.A. (now ABANCA CORPORACIÓN BANCARIA, S.A., the absorbing entity and universal successor of BANKOA, S.A.), amounting to one hundred and eighty thousand euro (€180,000), 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, pursuant to Article 98(1)(b) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions, for the commission of a serious infringement, as defined in Article 93(l) of said Law 10/2014, consisting of the inaccurate submission of information reportable to the Banco de España in the return entitled “Interest rates on lending transactions in Spain with the resident private sector”, included in Annex 9 of Banco de España Circular 5/2012.

Fine imposed on CEIM Confederación Empresarial de Madrid CEOE, director of Avalmadrid, a mutual guarantee company, amounting to twenty eight thousand and five hundred euro (€28,500), 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).

Fine imposed on Mr. Jesús Martín Sanz, director of Avalmadrid, a mutual guarantee company, amounting to forty thousand euro (€40,000), 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).

Fine imposed on Mr. Alfonso Carcasona García, director of Avalmadrid, a mutual guarantee company, amounting to forty five thousand and six hundred euro (€45,600), 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).

Fine imposed on Mr. Fernando Rodriguez Sousa, director of Avalmadrid, a mutual guarantee company, amounting to forty seven thousand and five hundred euro (€47,500), 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).

Fine imposed on Mr. Jesús Alejandro Vidart-Anchía, director of Avalmadrid, a mutual guarantee company, amounting to thirty one thousand and three hundred and fifty euro (€31,350), 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 monitoring).

Fine imposed on Servicios Prescriptor y Medios de Pago, E.F.C., S.A.U. (the Entity), amounting to five hundred and forty thousand euro (€540,000) — after application of the 40% reduction established in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure — pursuant to Article 98(1)(b) 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 consisting in the performance of actions or operations in breach of the rules issued under Article 5 of this Law, and, specifically, in breach of Order 2899/2011 and of Banco de España Circular 5/2012.

This infringement involved the Entity’s commercial practice of linking to the loan for the purchase of goods and services the simultaneous grant of a credit line, whose use was encouraged by the Entity, although it bore little relation to the financing originally sought by the customer, in terms of manner of repayment and cost. Furthermore, in the European Standardised Information Sheet, the credit line information was mixed with the loan information

Fine imposed on Servicios Prescriptor y Medios de Pago, E.F.C., S.A.U., amounting to two hundred and seventy thousand euro (€270,000) — after application of the 40% reduction established in Article 85 of Law 39/2015 of 1 October 2015 on the general government common administrative procedure — pursuant to Article 98(1)(b) 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 34(2) of Law 16/2011 of 24 June 2011 on consumer credit agreements, consisting in the breach of regulatory and disciplinary provisions of Law 16/2011 during the period between 1 July 2016 and 30 June 2018.

Specifically, these breaches related to the failure to deliver the pre-contractual documentation sufficiently in advance, and to shortcomings in the calculation of the annual percentage rate (APR) in the contractual documentation, given that certain fees and commissions were not included.

Fine of two thousand four hundred euro (€2,400) imposed on a shareholder of an electronic money institution, 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 98(1)(b) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions, for the commission of a serious infringement, as defined in Article 23(2) of Law 21/2011 of 26 July 2011 on electronic money, and in Article 27(4) of Royal Decree 778/2012 of 4 May 2012 on the legal regime for electronic money institutions.

Specifically, this infringement consisted in the acquisition of a significant shareholding in an electronic money institution, without fulfilling the obligations under Article 21 of the aforementioned Law 21/2011 to give prior notice and submit relevant information to the Banco de España.

Fine imposed on CRACK 10 ASTURIAS, S.L. amounting to seventy thousand euro (€70,000), pursuant to the first paragraph of Article 97(1)(a)(2º) 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, as defined in paragraph 2 of the fourth additional provision of said Law 10/2014.

Specifically, this infringement consisted in the failure to provide the information requested by the Banco de España as part of an inspection which, in accordance with the aforementioned additional provision, was performed by the latter, following ministerial approval, in order to verify whether said company was carrying out, without authorisation, activities reserved to credit institutions.

Secondary measure consisting in a public reprimand, with publication in the Official State Gazette, pursuant to Article 97(2)(c) of Law 10/2014 of 26 June 2014 on the regulation, supervision and solvency of credit institutions, relating to the fine imposed on CRACK 10 ASTURIAS, S.L. amounting to seventy thousand euro (€70,000), for the commission of a very serious infringement, of the type described in paragraph 2 of the fourth additional provision of said Law 10/2014.

Specifically, this infringement consisted in the failure to provide the information requested by the Banco de España as part of an inspection which, in accordance with the aforementioned additional provision, was performed by the latter, following ministerial approval, in order to verify whether said company was carrying out, without authorisation, activities reserved to credit institutions.

Fine imposed on IBERCAJA BANCO, S.A., amounting to one million eighty thousand euros (€1,080,000) — after the application of a reduction of 40% provided for in Article 85 of Law 39/2015 of 1 October 2015 on the common administrative procedure for general government, pursuant to Article 98(1)(b) 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 this latter Law, comprising the performance, between 1 January 2015 and 31 December 2017, of acts or operations in breach of rules issued under Article 5 of said Law 10/2014.

Specifically, in breach of Order 2899/2011 and of Banco de España Circular 5/2012 in relation to the provision of pre-contractual information and their content, as well as in relation to calculation of the APRC included in said pre-contractual information.

Fine imposed on Austrogiros Entidad de Pago, S.A., amounting to two hundred thousand euro (€200,000), pursuant to Article 97(1)(a)(2º) 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 92(d) of said Law 10/2014, comprising the failure to comply with minimum capital requirements.

Specifically, own funds stood below eighty per cent of the minimum level laid down by regulations according to the risks assumed, remaining in that situation for a period of at least six months (from at least 31 December 2014, and in particular, during the whole of the relevant period for the purposes of this proceeding, i.e. 1 January 2017 to 30 September 2018).

Fine imposed on Austrogiros Entidad de Pago, S.A., amounting to three hundred and fifty thousand euro (€350,000), pursuant to Article 97(1)(a)(2º) 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 92(g) of said Law 10/2014.

This infringement consisted of critical accounting irregularities which prevented the true balance sheet and financial position of the institution from being known.

Fine imposed on Austrogiros Entidad de Pago, S.A., amounting to two hundred and fifty thousand euro (€250,000), pursuant to Article 98(1)(b) 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 51(3) of Law 16/2009 of 13 November 2009 on payment services, comprising the failure to comply with regulatory and disciplinary rules applicable to payment institutions.

Specifically, there was a failure to comply with rules requiring payment institutions to have an  effective administration and management in Spanish territory.

Fine imposed on Austrogiros Entidad de Pago, S.A., amounting to one hundred and fifty thousand euro (€150,000), pursuant to Article 98(1)(b) 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(l) of said Law 10/2014.

This infringement consisted in the failure to send, the late sending of or the sending of inaccurate financial and accounting information or information on agents, plans for returning to compliance or the shareholding structure.

Fine imposed on Mr. Esteban Cordero, de facto director of Austrogiros Entidad de Pago S.A., amounting to twenty-five thousand euro (€25,000), 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 92(d) of said Law 10/2014, comprising the failure of the institution to comply with minimum capital requirements.

Specifically, own funds stood below eighty per cent of the minimum level laid down by regulations according to the risks assumed, remaining in that situation for a period of at least six months (from at least 31 December 2014, and in particular, during the whole of the relevant period for the purposes of this proceeding, i.e. 1 January 2017 to 30 September 2018).

Penalty imposed on Mr. Esteban Cordero, de facto director of Austrogiros Entidad de Pago S.A.,  of disqualification from serving as a director or  manager at any financial sector entity for a  period of 1 year, pursuant to Article 101(1)(d) 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 92(d) of said Law 10/2014,  comprising the failure of the institution to comply with minimum capital requirements.

Specifically, own funds stood below eighty per cent of the minimum level laid down by regulations according to the risks assumed, remaining in that situation for a period of at least six months (from at least 31 December 2014, and in particular, during the whole of the relevant period for the purposes of this proceeding, i.e. 1 January 2017 to 30 September 2018).

Fine imposed on Mr. Esteban Cordero, de facto director of Austrogiros Entidad de Pago S.A., amounting to fifty thousand euro (€50,000), 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 92(g) of said Law 10/2014.

This infringement consisted of critical accounting irregularities which prevented the true balance sheet and financial position of the institution from being known.

Penalty imposed on Mr. Esteban Cordero, de facto director of Austrogiros Entidad de Pago S.A., of disqualification from serving as a director or manager at any financial sector entity for a period of 2 years, pursuant to Article 100(1)(d) 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 92(g) of said Law 10/2014.

This infringement consisted of critical accounting irregularities which prevented the true balance sheet and financial position of the institution from being known.

Fine imposed on Mr. Esteban Cordero, de facto director of Austrogiros Entidad de Pago S.A. amounting to forty thousand euro (€40,000), 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 51(3) of Law 16/2009 of 13 November 2009 on payment services, comprising the failure to comply with regulatory and disciplinary rules applicable to payment institutions.

Specifically, there was a failure to comply with rules requiring payment institutions to have an  effective administration and management in Spanish territory.

Penalty imposed on Mr. Esteban Cordero, de facto director of Austrogiros Entidad de Pago S.A., of disqualification from serving as a director or  manager at any financial sector entity for a  period of 1 year, pursuant to Article 101(1)(d) 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 51(3) of Law 16/2009 of 13 November 2009 on payment services,  comprising the failure to comply with regulatory and disciplinary rules applicable to payment institutions.

Specifically, there was a failure to comply with rules requiring payment institutions to have an effective administration and management in Spanish territory.

Fine imposed on CAJAMAR CAJA RURAL, Sociedad Cooperativa de Crédito,  amounting to nine hundred thousand euro (€900,000) — after the application of a reduction of 40% provided for in Article 85 of Law 39/2015 of 1 October 2015 on the common administrative procedure for general government —, pursuant to Article 98(1)(b) 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, comprising the performance, between 1 January 2015 and 31 December 2017, of acts or operations in breach of rules issued under Article 5 of Law 10/2014.

Specifically, in breach of Order 2899/2011 and of Banco de España Circular 5/2012 in relation to the provision of pre-contractual information (above all, in cases of renewal), as well as their content (omission of arrangement expenses and other compulsory costs) and contractual documentation (omission of the APRC), as well as in relation to calculation of the APRC.

Penalty imposed on Ms. Susana Ruiz Robles,  sole director of Austrogiros Entidad de Pago S.A., of disqualification from serving as a director or manager at any financial sector entity for a period of 1 year, pursuant to Article 101(1)(d) 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 51(3) of Law 16/2009 of 13 November 2009 on payment services, comprising the failure to comply with regulatory and disciplinary rules applicable to payment institutions.

Specifically, there was a failure to comply with rules requiring payment institutions to have an  effective administration and management in Spanish territory.

Fine imposed on Ms. Susana Ruiz Robles, sole director of Austrogiros Entidad de Pago S.A., amounting to five thousand euro (€5,000), 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 93(l) of said Law 10/2014.

This infringement consisted in the failure to send, the late sending of or the sending of inaccurate financial and accounting information or information on agents, plans for returning to compliance or the shareholding structure.

Fine imposed on Ms. Susana Ruiz Robles, sole director of Austrogiros Entidad de Pago S.A., amounting to five thousand euro (€5,000), 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 93(l) of said Law 10/2014.

This infringement consisted in the failure to send, the late sending of or the sending of inaccurate financial and accounting information or information on agents, plans for returning to compliance or the shareholding structure.

Fine imposed on BANCO BILBAO VIZCAYA ARGENTARIA, S.A., amounting to four million euro (€4,000,000), pursuant to Article 98(1)(b) 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 15 of Real Decreto-Ley 6/2012, of march 9, on urgent measures to protect mortgage debtors without resources.

Specifically, the obligations derived from article 5.9 of the aforementioned Real Decreto-Ley have been breached, in relation to the information provided to clients on the existence and content of the Código de Buenas Prácticas, as well as, in certain cases, on the information regarding the causes of denial of requests on the documentation to be provided by the customer.

Fine imposed on BANCO BILBAO VIZCAYA ARGENTARIA, S.A., amounting to two million euro (€2,000,000), pursuant to Article 98(1)(b) 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 15 of Real Decreto-Ley 6/2012, of march 9, on urgent measures to protect mortgage debtors without resources.

Specifically, the obligations derived from article 5.4 of the aforementioned Real Decreto-Ley have been breached, related to issues such as the moment in which the economic effects of the restructuring should be applied, and, in certain cases, their amortization period or the requirement of additional conditions to those established in the standard.