The Hellenic Capital Market Commission distributed administrative fines of several millions for violations of the law, but received little. The uncollected fines of the ECC for the Republic of Cyprus, at the end of 2019, were € 20,596,583 and the receipts of fines, minus refunds, € 1,286,119. According to the data of the Committee submitted to the Parliament, the uncollected fines for the Republic of Cyprus refer to fines imposed on the capital market supervisors after 30 April 2004. The fines do not constitute revenue of the Commission but revenue of the Republic of Cyprus, which it collects the Capital Market on its part. When the fines are collected, they are paid to the Ministry of Finance on behalf of KD. For the most part these uncollected fines are pending in court for collection.
In the report on compliance and implementation of the Auditor General's remarks, as submitted by the Hellenic Capital Market Commission to the Parliament, it seems that there is a recommendation to intensify the efforts to collect the administrative fines as soon as possible. In the comments, the Commission states that the monitoring has been intensified in relation to the previous years and that in case of no response, legal proceedings are initiated. The Audit Office suggests to consider the possibility, in cases where the amounts owed are large and the debtor is unable to pay his debt, to be settled in installments, within a reasonable time frame. The Capital Market states that in all cases where the debtor requests payment facilities, settlement efforts are made. The Audit Office points out that, where there is no response, legal action should be taken in a timely manner with legal advisers. According to information from “Φ”, from € 20.59 million to approximately € 10 million relate to the imposition of fines on the former bankers of Bank of Cyprus and Laiki for violations of the legislation that took place from 2010 to 2012.
The Auditors' instructions are to apply debtor monitoring procedures (fines and other debts), which include chronological analysis (ageing analysis), as well as determination of the credit period. “Where there is no response, legal action should be taken in a timely manner with legal advisers.” The Capital Market points out “the monitoring process is recorded in the new collection procedure manual and includes a chronological analysis”. The Audit Office for better management suggests that the fines be considered in a separate bank account. The Capital Market replies that the implementation of the proposal is being considered within 2021.