Financial institution LHV is seeking a penalty of 247 million euros from the Financial Intelligence Unit
LHV Pank Claims €247 Million Penalty Against Estonian Financial Intelligence Unit
In a significant development, Estonian bank LHV Pank has submitted a notice of intent to claim a contractual penalty of 247 million euros from the Estonian Financial Intelligence Unit (FIU) due to an alleged unlawful access to the bank's sensitive data.
The unauthorized access is said to have occurred over a five-year period from January 1, 2020, to July 18, 2025. According to LHV Pank, the FIU used unauthorized software to access their internal systems without their knowledge, allowing them to gain access to clients' bank account statements, account numbers, and transaction details.
The bank claims that the FIU accessed their clients' data 1,289 times during this period without proper authorization. LHV Pank emphasizes the importance of transparent, lawful, and purposeful data retrieval and processing by state institutions to maintain client trust and protect banking secrecy.
The alleged unlawful access was first discovered by LHV Pank in 2020. In response, the bank has launched a criminal complaint against the FIU and has also initiated a civil lawsuit against the unit for damages caused by the unauthorized access.
The Estonian Data Protection Inspectorate has been notified of the incident. Other major Estonian banks like Swedbank and SEB have not yet decided to file claims, awaiting legal clarity while focusing on protecting their clients' rights and cooperating with the state to find solutions.
LHV Pank has stated that it will take all necessary legal measures to protect its clients' privacy and data security. The bank reiterates its commitment to upholding the highest standards of data security and transparency in its operations.
The Estonian Chancellor of Justice, Ülle Madise, has issued an opinion stating that the FIU had improperly accessed banking data through the enforcement register without sufficient legal basis. This opinion forms the basis for LHV Pank's claim against the FIU.
This incident highlights the importance of data privacy and security in the digital age, particularly for financial institutions. As more transactions move online, the need for robust data protection measures becomes increasingly crucial.
References: 1. LHV Pank submits claim for €247 million contractual penalty against FIU 2. LHV Pank accuses FIU of unauthorized software use
The financial dispute between LHV Pank and the Estonian Financial Intelligence Unit (FIU) stems from business matters, specifically a claim for a contractual penalty of €247 million due to alleged unlawful access to sensitive data.
The use of unauthorized software by the FIU to access LHV Pank's internal systems is a breach of both legal and financial business practices, potentially compromising clients' privacy and trust in the banking sector.
