Report 3/2022 Issuing of the decision concerning STS S.A. by the Chief Inspector of Financial Information (Generalny Inspektor Informacji Finansowej)
In relation to information relating to the proceedings commenced by the General Inspector of Financial Information (Generalny Inspektor Informacji Finansowej) (“GIIF”) and disclosed in the prospectus approved by the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego) on November 23, 2021 (the “Prospectus”), the Management Board of STS Holding S.A. (the “Issuer”) hereby reports that on January 25, 2022 a subsidiary of the Issuer, STS S.A., received a decision of GIIF on the imposition of an administrative penalty related to failure to comply with certain obligations under the Polish Act of March 1, 2018, on the Prevention of Money Laundering and Financing of Terrorism (the “AML Act”). According to the received information, GIIF, pursuant to the decision dated January 14, 2022, imposed an administrative penalty of PLN 2,950,000 on STS S.A.
In the opinion of the Issuer, the imposition of the administrative penalty and the initiation of the proceedings were unjustified. In particular, the explanations presented by STS S.A., during both the inspection and the administrative proceedings, were not taken into account. In the opinion of the Issuer’s Management Board, STS S.A. complied with all procedures required by the AML Act, including obligations concerning players verification, reporting as well as compliance with other obligations under the AML Act. Therefore, STS S.A. intends to appeal the GIIF’s decision and to use all available legal remedies, including taking action to the administrative court.
In the Issuer’s opinion, the penalty imposed by GIIF should not have a material impact on the financial position of the Issuer’s Group. At the current stage of the proceedings, the GIIF’s decision is not final, and the penalty will be due from the date the decision becomes final.
Legal basis: Art. 17(1) MAR