S.L. 373.3 Art. 9Settlement agreements. 

(1) In the course of determining the imposition of an administrative penalty on a credit or financial institution, the

Financial Intelligence Analysis Unit may, in its own discretion but in accordance with the policies and procedures referred to in article 13(2) of the Act, propose or agree to a request, to enter into a settlement agreement with the subject person or individual concerned.

(2) The Financial Intelligence Analysis Unit shall not enter into a settlement agreement where:

(a) the Financial Intelligence Analysis Unit believes that doing so would not be in the public interest in accordance with any policies and procedures as may be established by the Board of Governors; or

(b) two (2) years have not yet lapsed from the conclusion of any corrective or remedial actions undertaken by the credit or financial institution concerned as part of a prior settlement agreement:

Provided that the Financial Intelligence Analysis Unit may apply this restriction either in general or in relation to the different categories of actions that may be undertaken in accordance with article 26 of the Act but in any case it shall not enter into more than two (2) settlement agreements with the same subject person within a period of two (2) years:

Provided further that where the credit or financial institution forms part of a group, the said limitation shall take into account any settlement agreement entered into with any other subject person within the group.

(3) A settlement agreement shall be in writing, signed, and shall be binding on the Financial Intelligence Analysis Unit and the credit or financial institution concerned. The said settlement agreement shall establish the terms and conditions of the agreement and shall include: ACCOUNT REGISTER

(a) a description of the contraventions identified by the Financial Intelligence Analysis Unit and the unconditional agreement therewith by the credit or financial institution concerned;

(b) a description of any corrective or remedial actions which the Financial Intelligence Analysis Unit may deem necessary to restore compliance, where applicable;

(c) an undertaking by the credit or financial institution concerned to implement the corrective or remedial actions required by the Financial Intelligence Analysis Unit, within such time-frames and subject to such conditions as may be set by or otherwise agreed with the Financial Intelligence Analysis Unit;

(d) the administrative penalty which the Financial Intelligence Analysis Unit was intent on imposing on the credit or financial institution concerned, and the amount by which the said administrative penalty is reduced on condition that the credit or financial institution concerned complies with the terms and conditions of the settlement agreement;

(e) an undertaking by the credit or financial institution concerned to pay the reduced administrative penalty in accordance with the terms established in the settlement agreement;

(f) a waiver by the credit or financial institution concerned of any right to appeal, review or to otherwise challenge the determination and conclusions of the Financial Intelligence Analysis Unit; and

(g) a declaration by the credit or financial institution concerned that the amount by which the administrative penalty is reduced shall become due and payable to the Financial Intelligence Analysis Unit, upon the Financial Intelligence Analysis Unit’s determination that any corrective or remedial actions as are referred to in paragraph (c) have not been completed as envisaged by the settlement agreement.

(4) The amount of the administrative penalty conditionally reduced in accordance with sub-regulation (3)(d) shall be extinguished upon determination by the Financial Intelligence Analysis Unit that any corrective or remedial actions required by the settlement agreement have been carried out.

(5) In the event that a settlement agreement is not entered into due to lack of interest or lack of cooperation by the credit or financial institution concerned or within such time as may be set out by the Financial Intelligence Analysis Unit, the Financial Intelligence Analysis Unit shall proceed with the imposition of the administrative penalty in the full amount that it was intent on imposing and the imposition of such other measures as it is empowered by law to impose and as it may deem necessary.

(6) A settlement agreement shall be considered to be completed when the said agreement is signed by both parties and the credit or financial institution concerned has paid the full amount of the reduced administrative penalty in accordance with the terms and conditions established in the agreement, failing which, the Financial Intelligence Analysis Unit shall proceed with the imposition of the administrative penalty in the full amount it was intent on imposing and the imposition of such other measures as it is empowered by law to impose and as it may deem necessary.

(7) In the event that, following the conclusion of a settlement agreement, the Financial Intelligence Analysis Unit determines that the credit or financial institution concerned failed, without reasonable justification, to comply with the terms of the settlement agreement or with any corrective or remedial action as required by the agreement:

(a) the credit or financial institution concerned shall, following a notice in writing from the Financial Intelligence Analysis Unit, forfeit any concession or other benefit arising from the agreement, and the amount by which the administrative penalty had been reduced shall become due and payable to the Financial Intelligence Analysis Unit;

(b) the Financial Intelligence Analysis Unit may by notice in writing take such other measures as the Financial Intelligence Analysis Unit is empowered by law to take, and as may be deemed necessary in the circumstances, including issuing directives in writing requiring the credit or financial institution concerned to do or to refrain from doing any act, including such prohibitions, restrictions and limitations under such conditions as may be specified in the directives; and

(c) the Financial Intelligence Analysis Unit may institute an action before the Civil Court, First Hall, ACCOUNT REGISTER

to recover from the credit or financial institution concerned the amount by which the administrative penalty had been reduced in terms of the settlement agreement, and to enforce the completion of the corrective or remedial actions that the Financial Intelligence Analysis Unit had imposed through the settlement agreement.

(8) Any such action shall follow the procedure established in articles 167 to 170 of the Code of Organization and Civil Procedure:

Provided that where leave to defend the action is granted in accordance with article 170 of the Code of Organization and Civil Procedure or an appeal is otherwise filed from any decision of the Civil Court, First Hall, the time-frames established in article 13A(3) to (5) of the Act shall apply mutatis mutandis:

Provided further that articles 13A(6) and 13C of the Act shall also apply to any action referred to under this mutatis mutandis sub-regulation or an appeal therefrom.

(9) Where the Financial Intelligence Analysis Unit files an action as referred to in sub-regulation (7)(d), it may also request the court to impose on the credit or financial institution concerned additional penalties which shall not exceed one thousand euro (€1,000) for every day until the corrective or remedial actions are completed.

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