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Regulator Probes Coop Pank Over Former Client's €1.3M Tax Debt
Estonia's Financial Inspectorate has launched an investigation into Coop Pank's past relationship with JMV Motors, an auto company now facing a criminal probe and a tax liability of approximately 1.3 million euros.
- —The Estonian Financial Inspectorate has launched an investigation into Coop Pank concerning its past relationships with its former client, the auto company JMV Motors.
- —The inspection's interest in the bank's internal affairs reportedly began last year, following media reports about potential conflicts of interest.
- —These reports highlighted a shareholder's desire to finance JMV's Czech car business, which was previously supported by his company Eurex Finants.
- —The tax authority has identified a tax debt of approximately 1.3 million euros related to JMV's Czech operations, and a criminal investigation has been initiated.
- —Coop Pank terminated its cooperation with JMV Motors in the previous year.
Recap
The investigation into Coop Pank is a reactive measure by regulators, triggered by public reporting on potential conflicts of interest. It scrutinizes the bank's due diligence regarding a high-risk former client now embroiled in a criminal tax case. The core issue is whether the bank's internal controls were compromised, particularly given the alleged involvement of one of its own shareholders in the client's financing.
Articles
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