Regulation 1998/2532 - Powers of the European Central Bank to impose sanctions - Main contents

SUMMARY OF:

Regulation (EC) No 2532/98 concerning the powers of the European Central Bank to impose sanctions

Regulation (EC) No 2157/1999 on the European Central Bank’s powers to impose sanctions (ECB/1999/4)

WHAT IS THE AIM OF THE REGULATIONS?

The regulations set out the framework on the basis of which the European Central Bank (ECB) may impose sanctions* in the form of fines* or periodic penalty payments* on any undertakings* that do not comply with obligations arising from ECB and European Union (EU) legal acts in the various fields of competence of the ECB.

KEY POINTS

Limits for fines / penalty payments

• - 

  The upper limit for fines on undertakings is €500,000 or, in the case of sanctions imposed in relation to the ECB’s supervisory tasks, twice the amount of the profits gained or losses avoided because of the infringement or 10% of the total annual turnover of the undertaking.
• - 

  The upper limit for periodic penalty payments is €10,000 per day of infringement or, in the case of sanctions imposed in relation to the ECB’s supervisory tasks, 5% of the average daily turnover per day of infringement. Periodic penalties can be imposed for a maximum of 6 months from the day of the notification of the decision imposing such penalties.

Publication

• - 

  The ECB publishes any decision imposing sanctions on its website after the notification. The decision is anonymised if the publication could or is likely to:

  • - 

    jeopardise the stability of the financial markets or an ongoing criminal investigation; or
  • - 

    cause disproportionate damage to the undertaking concerned.

• - 

  If an appeal to the Court of Justice in respect of a decision imposing a sanction is pending, the ECB publishes without undue delay information on the status of the appeal in question and the outcome thereof on its official website.
• - 

  The information published remains available for at least 5 years.

Criteria taken into account

When considering a sanction, the ECB takes into account:

• - 

  the good faith and openness of the undertaking concerned;
• - 

  the seriousness of the impact of the infringement;
• - 

  the repetition, frequency or duration of the infringement;
• - 

  the profits obtained by the undertaking from the infringement;
• - 

  the economic size of the undertaking;
• - 

  any prior sanctions imposed on the undertaking for the same infringement by other competent authorities.

Infringement procedure

• - 

  The decision on whether to initiate an infringement procedure must be taken by the ECB, acting on its own initiative or on the basis of a motion to that effect addressed to it by the national central bank of the EU Member State in whose jurisdiction the alleged infringement has occurred.
• - 

  The same decision can be taken, on its own initiative or on the basis of a motion to that effect addressed to it by the ECB, by the national central bank of the Member State in whose jurisdiction the alleged infringement has occurred.
• - 

  The undertaking concerned must be given no fewer than 30 days to present its defence.
• - 

  The Executive Board adopts a reasoned decision on whether to impose sanctions on the undertaking.
• - 

  Within 30 days of receiving the reasoned decision, the undertaking may request that the ECB’s Governing Council review the decision. If no decision has been taken within 2 months, the decision becomes final.
• - 

  The undertaking concerned is notified of the conclusion and of its right of judicial review.
• - 

  The infringement procedure must be triggered within 1 year from the existence of the infringement becoming known to the ECB or to the national central bank of the jurisdiction where it occurred. Failing that, this right expires.

FROM WHEN DO THE REGULATIONS APPLY?

• - 

  Regulation (EC) No 2532/98 has applied since 1 January 1999, apart from Article 6(2), which has applied since 27 November 1998.
• - 

  Article 6(2) allowed the ECB to adopt regulations to specify further the arrangements whereby sanctions may be imposed, together with guidelines to coordinate and harmonise the procedures in relation to the infringement procedure.
• - 

  Regulation (EC) No 2157/1999 has applied since 23 September 1999.

BACKGROUND

The ECB conducts the monetary policy of the euro area with the primary objective of maintaining price stability. It also supervises banks in the euro area and other Member States that have chosen to participate in the Single Supervisory Mechanism, set up under Regulation (EU) No 468/2014 (see summary).

For further information, see:

• - 

  Sanctions (European Central Bank).

KEY TERMS

Sanctions. Fines and periodic penalty payments.

Fine. A single amount of money that an undertaking is obliged to pay as a sanction.

Periodic penalty payments. Amounts of money that, in the case of a continued infringement, an undertaking is obliged to pay either as a punishment, or with a view to forcing the persons concerned to comply with the ECB supervisory regulations and decisions.

Undertakings. Natural or legal persons, private or public, with the exception of public persons in the exercise of their public powers, which are the subject of obligations arising from ECB regulations and decisions.

MAIN DOCUMENTS

Council Regulation (EC) No 2532/98 of 23 November 1998 concerning the powers of the European Central Bank to impose sanctions (OJ L 318, 27.11.1998, pp. 4–7).

Successive amendments to Regulation (EC) No 2532/98 have been incorporated in the original text. This consolidated version is of documentary value only.

European Central Bank Regulation (EC) No 2157/1999 of 23 September 1999 on the powers of the European Central Bank to impose sanctions (ECB/1999/4) (OJ L 264, 12.10.1999, pp. 21–26).

See consolidated version.

RELATED DOCUMENTS

Decision (EU) 2021/1815 of the European Central Bank of 7 October 2021 on the methodology applied for the calculation of sanctions for non-compliance with the requirement to hold minimum reserves and related minimum reserve requirements (ECB/2021/45) (OJ L 367, 15.10.2021, pp. 4–8).

Decision (EU) 2017/2097 of the European Central Bank of 3 November 2017 on the methodology for calculating sanctions for infringements of the oversight requirements for systemically important payment systems (ECB/2017/35) (OJ L 299, 16.11.2017, pp. 31–33).

Regulation of the European Central Bank (EU) No 795/2014 of 3 July 2014 on oversight requirements for systemically important payment systems (ECB/2014/28) (OJ L 217, 23.7.2014, pp. 16–30).

See consolidated version.

Regulation (EU) No 468/2014 of the European Central Bank of 16 April 2014 establishing the framework for cooperation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities (SSM Framework Regulation) (ECB/2014/17) (OJ L 141, 14.5.2014, pp. 1–50).

Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, pp. 63–89).

last update 16.05.2022

This summary has been adopted from EUR-Lex.