AMF, 9.4 million ALL income from fines for insurance companies last year

2024-04-10 17:46:00, Kosova & Bota CNA

The Financial Supervision Authority took 28 measures against supervised entities last year.

According to the report of this institution to the assembly, the measures were taken mainly as a result of findings from the analysis of financial indicators, from the inspections carried out in the country by the Authority, but also suspensions or revocations of licenses for the exercise of the activity.

In the insurance market, 20 decisions were made, of which 13 decisions were for corrective measures and sanctions with fines against insurance companies or the responsible person, two decisions for refusal of revision to requests for revision, two decisions with corrective measures against insurance brokerage companies and three decisions with revocation of license to subjects to exercise insurance brokerage activity.

Even against the Albanian Insurance Bureau, two decisions were taken with administrative measures.

In the practice of regulatory institutions, the content of administrative measures against supervised subjects, including the value of the imposed fine, is not published.

However, according to the financial statements of the AMF submitted to the Parliament of Albania, during the year 2023 this institution realized 9.4 million ALL in income from fines imposed on insurance companies. According to the notes of the financial statements, the realized revenues are all fines for insurance companies, while for the year 2023 no revenues from fines imposed on other entities under supervision have been reported.

Revenues from fines decreased by 43% compared to the previous year.

According to the law "On the activity of insurance and reinsurance", the AMF can impose fines on insurance companies that can reach up to three million ALL, depending on the violation found. Subjects of fines may be the administrators of insurance companies, for amounts from 100 thousand to 400 thousand ALL, as well as the members of the supervisory council, in the range between 300 thousand ALL and 500 thousand ALL.

The law stipulates that, when imposing a sanction with a fine, the AMF ensures that it is effective and preventive, as well as proportional to the situation that caused the imposition of the measure. Also, the law requires that the AMF, when imposing sanctions, apply the principle of continuity, according to which similar sanctions are imposed for similar violations.

Meanwhile, three administrative decisions were made in the securities market last year.

A company's license was revoked and it was deregistered to operate in the securities market, while corrective measures were taken against two banks that offer investment services.

In the market of private pension funds and collective investment enterprises, two decisions have been taken, which are decisions with corrective measures against the management companies of private pension funds and investment funds. According to the law, fines for pension and investment fund management companies can reach up to three million ALL./ Monitor.al