In a Wednesday press release, Spuerkeess addressed recent accusations, reiterating that the fine imposed by the Financial Sector Supervisory Commission (CSSF) was unrelated to the Caritas fraud case.
The bank acknowledged that the CSSF had identified “structural” weaknesses in its control mechanisms. However, it emphasised that the fraud perpetrators were not its employees and noted that it remains unclear whether stronger controls could have detected or prevented such “exceptional” transactions.
Spuerkeess also defended its staff, stating that established procedures were followed during the transactions in question and that no misconduct occurred. Still, the bank conceded that its mechanisms were not entirely free of flaws.
The bank’s representatives had previously appeared before the parliamentary special committee on the Caritas affair on 5 May. While Spuerkeess admitted it had been aware of the impending fine for several days, it clarified that the CSSF’s procedure was neither public nor finalised at the time. The bank maintained that its representatives had answered lawmakers’ questions “objectively” and “in good faith.”
In its statement, Spuerkeess repeatedly described the financial fraud as having evolved in a “spectacular” manner. The state-owned bank has since implemented corrective measures but acknowledged the need for ongoing improvements.
In a recent Radio 100,7 interview, Spuerkeess’ director mentioned pursuing an out-of-court settlement with the Caritas Foundation to resolve outstanding loan issues.
The bank had extended a €10 million credit line to Caritas, while BGL BNP Paribas provided €23 million. The European Central Bank (ECB) is currently assessing whether the lenders committed any errors in handling these credit facilities – a matter falling under the ECB’s supervision, not the CSSF’s.
Notably, the CSSF’s fine pertains solely to the processing of transfers by the banks. In this regard, BGL BNP Paribas did not face penalties.
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