UniCredit fined €315,000 for control 'breaches'
UniCredit, Italy's biggest lender, was fined €315,000 by the Central Bank of Ireland after its subsidiary in that country breached risk controls.
UniCredit Bank Ireland's exposure to Italian and Spanish sovereign debt exceeded "permitted large exposure limits" on dates in 2011 and 2012, the central bank said yesterday.
Dealings with one client also exceeded exposure limits in 2012, the subsidiary told the Central Bank last year.
"This is the first settlement by the central bank with a firm for breaches of the large exposure limits and the failure to have in place proper internal controls around large exposures," Derville Rowland, the watchdog's enforcement director, said in the statement.
UniCredit's local unit notified the central bank of the breaches, according to the statement. The company has taken "appropriate remedial steps" to rectify the breaches, the regulator said.
UniCredit Bank Ireland's main areas of business include structured finance and treasury activities, according to a company filing.
UniCredit Bank Ireland had assets of €26.2bn at the end of 2013, according to a report on the unit's website. The subsidiary made a profit of €47.1m, the report shows.
Mary Glynn, a spokeswoman for UniCredit here, declined to comment on the settlement. (Bloomberg)