Íslandsbanki hf.

In 2024, Íslandsbanki entered into a settlement with the Financial Supervisory Authority of the Central Bank of Iceland following an onsite inspection that began in autumn 2022. The bank accepted the authority's conclusion that its shortcomings were numerous and concerned several fundamental elements of its anti-money-laundering control framework. The identified issues concerned the bank's business-wide risk assessment, risk assessments for individual customers and transactions, customer due diligence, due diligence involving foreign financial institutions, enhanced due diligence, and ongoing monitoring of transactions and customers, including the recording and traceability of cash transactions. The authority described the breaches as significant and stated that some repeated observations previously made in 2021. Íslandsbanki agreed to undertake remedial measures and pay an administrative fine of ISK 570 million to the Icelandic Treasury. The settlement concerned failures in the bank's AML control systems. It did not establish that money laundering had occurred through the bank. Sources: Central Bank of Iceland — settlement concerning breaches of anti-money-laundering legislation: https://sedlabanki.is/frettir-og-utgefid-efni/grein/2024-06-04-Samkomulag-Sedlabanka-Islands-vid-Islandsbanka-hf--um-ad-ljuka-med-satt-mali-vegna-brota-Islandsbanka-gegn-logum-um-adgerdir-gegn-peningathvaetti-og-fjarmognun-hrydjuverka Íslandsbanki announcement through Nasdaq: https://view.news.eu.nasdaq.com/view?id=b8af7c7eb25f6032434cb813cab596953&lang=en

On 22 March 2022, the Icelandic State sold a 22.5% holding in Íslandsbanki through an accelerated offering in which the bank provided investment services. Following an investigation, Íslandsbanki entered into a settlement with the Financial Supervisory Authority of the Central Bank of Iceland. The bank admitted violating provisions of Iceland's Act on Markets in Financial Instruments and Act on Financial Undertakings in connection with its execution of the offering. The bank agreed to pay ISK 1.16 billion to the Icelandic Treasury and accepted obligations to implement specified remedial measures. The settlement resolved the regulatory case and was not merely an unproven allegation. Sources: Central Bank of Iceland — settlement concerning violations during the sale of the State's holding: https://sedlabanki.is/frettir-og-utgefid-efni/grein/2023-06-26-Samkomulag-Sedlabanka-Islands-vid-Islandsbanka-hf--um-ad-ljuka-med-satt-mali-vegna-brota-Islandsbanka-vid-solumedferd-eignarhluta-rikisins-i-bankanum- Íslandsbanki announcement through Nasdaq: https://view.news.eu.nasdaq.com/view?id=b42fad279807f8f48f81330f053675e1f&lang=en