Lombard Bank Malta Plc

Legal Proceedings Report • Oct 30, 2020

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by Lombard Bank Malta p.l.c. pursuant to the Listing Rules of the Listing Authority.

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The Financial Intelligence Analysis Unit (FIAU) has informed Lombard Bank Malta p.l.c (the Bank) that it has imposed an administrative penalty on the Bank for what were considered as breaches in certain AML/CFT obligations. The findings were noted by the FIAU during an inspection carried out in September/October 2019. While the findings were of an administrative nature, they did not relate to suspicions or evidence of money laundering. The Bank will be appealing against this decision.

In this regard the Bank reassures all its stakeholders that it has always been, and remains, committed to prevent the use of its services for any form of illicit activity. Indeed, as a matter of policy it does not enter into business relations with those involved in sectors considered to carry inherent AML/CFT risks while it continues to strengthen its defences to this end.

Investment in technical and human resources to further minimise the potential for financial crime continues unabated. In its 50-year history Lombard has built a reputation as an upright and trustworthy institution based on traditional relationship banking inspired by sound principles and best-practice standards and is determined to avoid anything that might jeopardise this hard-earned reputation.

The Bank reaffirms its policy of zero-tolerance even in cases that suggest the slightest hint of improper conduct and continues to rely on the integrity, professionalism and dedication of its staff members.

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Helena Said Company Secretary

30 October 2020

Lombard Bank Malta p.l.c.