Central Bank Settlement Agreements

The Central Bank`s policy is to promote the early resolution option, but it must be satisfied that the basis for resolution is appropriate, taking into account all the relevant facts. This includes determining whether all concerns have been addressed to the satisfaction of the Central Bank and any other relevant considerations. The degree of cooperation between the regulated entity or person and the central bank during an investigation will also be relevant to the regulation. All settling of scores is voluntary. Some frequently asked questions of regulated companies and individuals regarding the settlement procedure are listed below: the settlement procedure is parallel to an investigation and it should be noted that an indication of willingness to participate in transaction interviews does not result in the suspension of an investigation. The transaction agreement is a written document signed that is legally binding on the central bank and the regulated entity. As a general rule, a transaction agreement will contain the following: the central bank will present its case and the regulated financial service provider/regulated person will have the opportunity to represent itself. An agreement on sanctions can then be reached and the regulated financial service provider/data subject will have the opportunity to express his or her views on the Central Bank`s public statement. The transaction agreement is then signed. A settlement meeting is agreed between the central bank and the regulated entity to discuss the resolution. This meeting takes place in a location determined by the Central Bank and can normally last up to one day. A regulated entity or person may receive a settlement letter from the central bank at the same time as or at any time after receipt of the investigation letter.

The Sttlement Letter, published “without prejudice”, is a letter that makes it possible to remedy alleged prescribed infringements with the Central Bank by means of a settlement agreement. Prior to the transaction meeting, the financial transaction(s)/regulated person are informed in writing that the sanction(s) (z.B. reprimand, disqualification, amount of the fine, etc.) are requested by the central bank. . . .

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