Iceland’s financial supervisor fines Arion Bank 280 million krónur

Arion Bank has agreed to pay a 280 million-króna fine under a settlement with the Financial Supervisory Authority of the Central Bank of Iceland, mbl.is reports.

The settlement follows an investigation launched in April 2024 into the bank’s compliance with laws on market abuse and financial markets. The regulator found that Arion failed to report share transactions by two clients in 2022 and 2023, despite clear indications of possible market manipulation. Some transactions were identified by the regulator; others were reported by the bank after it began its own review in response to the investigation.

Arion acknowledged shortcomings in its procedures, staff training and systems for identifying and reporting suspicious orders and trades. It also said its automated monitoring system was not adequately configured at the time. The regulator found that the bank had also failed to meet certain requirements on product governance, suitability assessments, and staff knowledge and competence.

The bank said corrective measures were already well advanced. They include introducing a new international monitoring system, developing automated tools to identify possible market manipulation, and revising its rules and procedures.