FIN GVT NPL Rules EU Infringement Case

Published on: Mar 26, 2025

On Mar. 21, FIN GVT said EC sent Finland to EU Court re NPL directive.

  • FIN GVT announced EC sent Finland to EU Court re NPL directive implementation lack.
  • Follows FIN PRL Dec. 2024 bill on proposal to transpose NPL directive, see #226114.
  • Overview
  • In action EC states EU States were required to adopt provisions to implement directive into national legal order and notify those provisions by Dec. 29, 2023, at the latest.
  • Finland failed to comply with the obligation as did not notify implementing measures.
  • EC requests EU Court to declare Finland infringed its obligations under NPL directive, order it to pay compensation, amount of which depends on the infringement duration.
  • Minimum amount of such compensation for Finland has been set at EUR 1,237,000.
  • In addition, if infringement continues after judgment, Finland should, according to EC, be ordered to pay a daily penalty payment until the infringement is brought to an end.
  • Context
  • The EC action of Mar. 20, 2025 was preceded by letter of formal notice of Jan. 24, 2024 and a reasoned opinion issued of Jul. 25, 2024.
  • As for implementation status, FIN GVT adopted a proposal to transpose the directive on Dec. 19, 2024 which is currently being considered by the FIN PRL.
  • Effectiveness
  • Finland must submit its response to the EU Court of Justice by May 30, 2025.
Regulators
FIN GVT
Entity Types
Corp
Reference
PR 3/21/2025; Dir 2021/2167
Functions
Compliance; Financial; Legal; Risk
Countries
Finland
Category
State
N/A
Products
Corporate
Rule Type
Final
Regions
EMEA
Rule Date
Mar 21, 2025
Effective Date
May 30, 2025
Rule ID
247969
Linked to
Reg. Last Update
Mar 21, 2025
Report Section
AML & Enforcement