N 1. General provisions 1.1. These general terms and conditions (hereinafter the General Terms ) of Luminor Bank AS (hereinafter the Bank ) shall apply to all relations that may arise between the Bank and its customers. The customers shall be deemed to be any natural or legal persons who use, have used or have expressed a wish to use the services of the Bank. 1.2. The objective of the General Terms is to establish the basic principles for relations between the Bank and the Customer, the communication procedure and the general terms and conditions for conducting transactions between the Bank and the Customer. 1.3. In addition to the General Terms, the terms and conditions of the Bank s products and services (hereinafter the Service Terms ), the Bank s price list (hereinafter the Price List ), terms separately agreed upon by the parties, good banking practices, the principle of good faith and reasonableness shall apply to the relations between the Bank and the Customer. 1.4. The General Terms shall also apply to continuous legal relations between the Bank and the Customer that have arisen prior to entry into force of the General Terms. 1.5. The General Terms, Service Terms and Price List are available in the Bank s offices and service centres, as well as on the Bank s website at www.luminor.ee. 1.6. Relations between the Bank and the Customer are governed by Estonian law. Foreign law applies if so prescribed by an Estonian legal act or by a contract between the parties. 2. Interpretation of the terms 2.1. The General Terms, Service Terms and the terms separately agreed upon by the parties shall be interpreted together, taking into account the intent and purpose of the relevant terms and the nature of the transaction between the parties. 2.2. Upon discrepancies between the General Terms or Service Terms and the terms separately agreed upon between the Bank and the Customer, the terms separately agreed upon shall prevail. Upon discrepancies between the General Terms and Service Terms, the respective Service Terms shall prevail. 2.3. Upon discrepancies between the texts of the General Terms, Service Terms or Price List in the Estonian and foreign languages, the Estonian text shall prevail. 3. Establishing and amending of the terms 3.1. The General Terms, Service Terms and charges, including Price List shall be established by the Bank. The Bank shall have the right to unilaterally amend and supplement the General Terms, Service Terms and Price List, including imposing separate charges on legal entity customers. 3.2. The Bank shall notify Customers of amendments by publishing the amended Terms or Price List on the Bank s website, in the Bank s offices and/or service centres or by forwarding a notification directly to the Customer. 3.3. The Bank shall notify Customers of amendments at least one month before the amendment takes effect, except as otherwise provided for by the General Terms. 3.4. The Bank shall notify those Customers who are consumers of amendments in payment services listed in subsection 3 (1) of Payment Institutions and the Electronic Money Institutions Act (hereinafter the Payment services ), and of amendments in the Price List that are connected with Payment services, at least two months before the amendment takes effect, in a notification sent via the internet bank, by e-mail, SMS, or mail indicating a place wherein the new terms are published for examination. 3.5. If the Customer does not agree to the amendments, the Customer is entitled to cancel the relevant contract free of charge before the amendments take effect, by notifying the Bank thereof in writing and by performing prior to termination any and all obligations arising from the contract. Customers, who have not terminated the contract in accordance with the procedure above, are deemed to have accepted the amendments. 3.6. The Bank shall notify Customers of amendments in the consumer credit interest rate on a durable medium unless otherwise agreed upon in the consumer credit contract. The interest rate change shall take effect upon receipt of the notification by the customer pursuant to paragraph 8.3. 3.7. The Bank shall not notify Customers of any amendments in the Price List and charges that are more favourable with regard to Customers. 4. Identification 4.1. The Bank shall identify the Customer and his/her representative in accordance with the procedure established by the Bank and the requirements prescribed by law. The Customer and his/her representative shall be obliged to present the data and documents requested by the Bank for the purposes of identification.
4.2. Natural persons are identified on the basis of identity documents determined by the Bank. 4.3. Legal persons are identified on the basis of an extract from the relevant register, certificate of registration and/or other documents acceptable to the Bank. An Estonian legal person being founded is identified on the basis of the memorandum of association or foundation resolution, as the case may be. 4.4. If the data contained in the documents specified in clause 4.3 are insufficient to identify a legal person in accordance with the Bank s requirements, the Bank shall have the right to request additional data and documents (e.g. articles of association, data about members of managing bodies and their location). The bank shall also have the right to request data about the founders, shareholders or members and the ultimate beneficial owners of a legal person. 4.5. Based on a contract with the Customer, the Bank may further identify the Customer or his/her representative via the technical means of communication accepted by the Bank. 5. Representation 5.1. A natural person may enter into a transaction with the Bank in person or through a representative. If so requested by the Bank, a natural person shall be obliged to enter into a transaction in person. 5.2. A legal person may enter into a transaction with the Bank through a legal representative or representative acting on the basis of a mandate. If so requested by the Bank, a legal person shall be obliged to enter into a transaction through a legal representative. 5.3. The document certifying the right of representation shall be in the form acceptable to the Bank. The Bank is entitled to request that the document certifying the right of representation is notarised. 5.4. The Bank shall have no obligation to accept a document in which the right of representation has been expressed ambiguously and/or which does not express clearly and unambiguously the will of the principal. 5.5. The Customer shall also notify the Bank of the withdrawal, cancellation or declaring null and void of a notarised authorisation in the event the respective notice has been published in Ametlikud Teadaanded (Official Notices). 6. Requirements to documents 6.1. The Customer shall present to the Bank original documents or copies thereof authenticated by a notary. 6.2. The Bank shall have the right to presume that the documents presented by the Customer are authentic, valid and correct. If a document fails to meet the requirements of the Bank or if doubts arise concerning its authenticity, validity or completeness, the Bank shall have the right to refuse to enter into a transaction or request the provision of additional data or documents necessary for entering into the transaction. 6.3. The Bank shall have the right to keep the presented document (except identity documents) or make a copy thereof. 6.4. The Bank shall have the right to request legalisation of a foreign document or confirmation thereof with an appostille. 6.5. The Bank shall have the right to request translation of a foreign language document. The translation has to be authenticated by a sworn translator or a notary. 6.6. Documents to be submitted shall be obtained by the Customer at his/her own expense (state fees, costs relating to attesting, legalising, confirmation with an appostille, translating etc.). 7. Signing of documents and orders 7.1. The Bank shall accept hand-written signature of the Customer or his/her representative. In the cases and in accordance with the procedure specified by a contract between the Bank and the Customer, codes communicated electronically or verbally shall be deemed equal to the hand-written signature. 7.2. The Bank shall have the right to request that the signature be given in the Bank s office, or if this is not practicable, to request the signature be authenticated by a notary. Specimen signatures to the signature card shall be given in the Bank s office. 7.3. Subject to additional agreement, the Bank and the Customer shall also accept orders and other documents signed electronically, as well as those sent by facsimile and provided with the hand-written signature. 8. Exchange of information between the Bank and Customer 8.1. The exchange of information between the Bank and the Customer shall be performed in Estonian, unless otherwise agreed between the Bank and the Customer. 8.2. The Bank shall provide information to Customers in the Bank s offices and service centres, on the Bank s website or in the internet bank, as well as by mail, e-mail, SMS or via other means of communication or the public media. 8.3. A notice sent by mail, e-mail or via any other means of communication by the Bank to the Customer, his/her representative or any other person entitled to accept a notice in the name of the Customer, shall be deemed as having been received and the obligation of the Bank to provide information as having been fulfilled if the notice has
THE BANK S GENERAL TERMS AND CONDITIONS 10/2017 been forwarded to the contact address (incl. e-mail address) or contact number last notified to the Bank by the Customer or by his/her representative, or to the contact address entered in the Population Register, Commercial Register or in other database. Notification sent by mail, e-mail, via internet bank or other communication channels is deemed to be received by the customer on the fifth calendar day following the date of posting or transmission of the message. 8.4. The Customer shall have the obligation to immediately verify the accuracy of information contained in the account statement or other notice received from the Bank, and immediately notify the Bank of any inaccuracies ascertained. 8.5. The Customer may forward information to the Bank in the Bank s offices and service centres, via telephone bank and internet bank, and in any other agreed manner. 8.6. The Customer shall have the obligation to notify the Bank of failure to receive the account statement or any other notice that is forwarded by the Bank on a regular basis, immediately after the agreed term for receiving thereof has passed. 8.7. The Customer shall have the obligation to immediately notify the Bank of the loss, theft or any other occasion of losing the possession over the identity document of the Customer or his/her representative. 8.8. The Customer shall have the obligation to immediately notify the Bank of circumstances that affect or may affect the performance of a contract entered into with the Bank, as well as of changes in the data contained in a contract entered into with the Bank or in the documents submitted to the Bank (e.g. of changes in the name, address, contact number, area of activity, data of the ultimate beneficial owner or representatives, termination of authorisation, etc.).a legal person shall notify the Bank, inter alia, of changes in its company form, merger, division, declaration of bankruptcy and commencement of compulsory dissolution or liquidation proceedings or deletion from the register. Upon the request of the Bank, the Customer shall submit a document certifying the respective change. 8.9. The obligation to notify the Bank shall exist even if a court decision or an entry in a public register has been made with respect to the circumstances that are subject to notification or in case information concerning these circumstances has been disclosed via public media. 8.10. If the Customer has failed to fulfil the above obligation to notify, the Bank presumes that the information in its possession is accurate. 9. Banking secrecy, consent for the disclosure of banking secrecy, and processing of personal data 9.1. Banking secrecy shall include all the information and assessments that the Bank has become aware of about its Customer or a customer of another credit institution. Banking secrecy shall not include any data which is either public or available, upon a legitimate interest, from other sources, and consolidated data on the basis of which the data or identity of a specific Customer cannot be established, as well as the information about the correctness of discharge of the Customer s obligations to the Bank. 9.2. Personal data shall include any data about an identified or identifiable natural person. Processing of personal data means any operation which is performed with personal data, such as collection, storage, use and transmission of personal data. 9.3. The Customer agrees to the disclosure of banking secrecy concerning him/her to: (ii) (iii) legal persons who belonged and are belonging to the same group with the Bank, incl. to legal persons that shall become members of the group in the future, and credit institutions to whom the Bank, upon the transfer of a business, shall provide the rights and obligations arising from a contract with the Customer; to direct and indirect shareholders of the Bank, if disclosure of banking secrecy is necessary for the compliance with the requirements set by the regulatory enactments governing activities of the respective person; other persons referred to in clauses 9.4. and 9.6. for the fulfilment of objectives stipulated in clauses 9.4. and 9.6. Categories of the personal data processed by the Bank and objectives of processing thereof 9.4. The Customer s personal data processed by the Bank according to law and the main objectives of processing thereof shall be as follows: Data for identifying the person (name, personal identification code, date of birth, data of an identity document, etc.) that the Bank processes to identify the Customer; (ii) Contact data (address, telephone number, e-mail address, etc.) that the Bank processes to communicate with the Customer and to deliver information related to performing the Contract; (iii) Data about proficiency of the Customer (education, knowledge of financial services, etc.) that the Bank processes to provide financial services, incl. the consultation service, suitable to the Customer; (iv) Financial data of the Customer (employer, position, business activities, income, assets, liabilities, dependants, payment behaviour, etc.) that the Bank processes to assess the Customer s solvency and credit risk and to apply
(xi) (xii) the principle of responsible lending and to provide financial services, incl. the consultation service, suitable to the Customer; (v) Data about the Customer s payment obligations that the Bank processes to assess the Customer s solvency and credit risk and to recover debts; (vi) Data about the origin of the Customer s assets (e.g. data about the employer, transaction partners, business activities, etc.), which shall be used for the purposes of preventing money laundering and terrorist financing; (vii) To provide banking services, the Bank shall cooperate with contract partners whom the Bank may, within the scope of and for the purposes of such cooperation, transmit data related to a Customer, incl. personal data and data containing banking secrecy. Such partners may include e.g. correspondent banks and other payment intermediaries, securities depositaries, international card organisations, ATM administrators, cash handlers, providers of IT, archiving, printing, translation and communications services, and insurers; (viii) For the purposes of applying the principle of responsible lending and also in order to enable the assessment of the Customer s payment behaviour and credit solvency by the third parties, the Bank shall transmit data related to a Customer, incl, data containing banking secrecy, to the Registrar of the Credit Register (e.g. AS Krediidiinfo). Customer related data that has been transmitted to the Registrar of the Credit Register can be processed by all individuals who are members of such Register or who have legitimate basis for accessing such Register (e.g. police, court). Only the data related to the violation of payment obligation of such Customers shall be transmitted to the Credit Register who are in delay for more than 30 days with performing the contract concluded with them. More detailed information on the Credit Register administered by AS Krediidiinfo is available on the homepage of AS Krediidiinfo at www.krediidiinfo.ee. For assessing a Customer s payment behaviour and also for verifying the data related to a Customer, the Bank transmits Customer related data to the Register maintained by AS Krediidiinfo also in the form of inquiries; (ix) The Bank shall be entitled to transmit the data, incl. the personal data and data containing banking secrecy, related to a Customer to legal persons who belonged and are belonging to the same group with the Bank, incl. to legal persons that shall become members of the group in the future and credit institutions to whom the Bank, upon the transfer of a business, shall provide the rights and obligations arising from a contract with the Customer, as well as to ask and receive from them such data in order to identify the Customer, verify the origin of the Customer s assets, assess the Customer s solvency and credit risk, offer financial services to the Customer and ensure performing of the Contracts concluded with the Customer; (x) For the purposes of preventing money laundering and terrorist financing, the Bank shall be entitled to transmit the Customer-related data to registrars/administrators of databases of the Population Register, Commercial Register or other register/database who hold or intermediate respective Customer s data in order to verify the accuracy and relevance of the Customer s data or to obtain necessary additional information on the Customer; Arising from the Tax Information Exchange Act, the Bank shall collect certain tax information on the Customer and transfer it to the Tax and Customs Board once a year who, in turn, shall transmit the data to the tax authorities of those countries which the Customer has indicated as his/her residence for tax purposes; If another credit institution or payment intermediary has been included in performing of the transaction (e.g. interbank transfers), the Bank shall transmit to it the Customer s data related to the transaction, incl. personal data. In case of international banking transactions (e.g. cross-border transfers) as well as in case of Estonian domestic transfers of foreign currency and domestic urgent payments, the Bank shall transmit such data via the worldwide interbank information system SWIFT (Society for Worldwide Interbank Financial Telecommunication, see www.swift.com). The data processing centres of SWIFT are located in the European Union and the United States of America, due to which the data related to the transaction, incl. the personal data of the remitter and the beneficiary, are processed, regardless of the place of transfer, in the data processing centres of SWIFT located both in the European Union as well as in the United States of America; The Customer is aware that in case of the transactions specified in the current clause, the credit institution, payment intermediary or SWIFT included in performing of the transaction may be obligated to transmit, primarily to prevent money laundering and terrorist financing, to the public authorities of their country of location (in the case of SWIFT the country of location of the data processing centre) the data related to the transaction, incl. the Customer s personal data. The Customer is also aware and agrees that the country, to which the data is transmitted in accordance with the aforementioned procedure, may also be such a country the data protection level of which is not comparable to that of the countries of the European Union or the European Economic Area. Due to the aforementioned, the Customer may not have the same rights and the data processor may not have the same obligations upon the processing of the Customer s personal data, as upon the processing of personal data in a country belonging to the European Union or the European Economic Area or in any other country, the personal data protection level of which has been assessed as sufficient by the European Commission. 9.5. In clause 9.4, next to each personal data category, the main objectives of processing the personal data have been specified. The Bank shall also be entitled to process the mentioned personal data for the purposes not specified in clause 9.4 if this is necessary to perform the Contract concluded with the Customer or if processing of the data is
required for fulfilling an obligation set forth by law. The Bank shall be entitled to prepare lists of the personal data of Customers analysed on different bases (e.g. list of debtors, etc.). 9.6. The Customer s personal data processed by the Bank upon the Customer s consent and the main objectives of processing thereof shall be as follows: Data about the Customer s banking transactions and the banking services used by the Customer, as well as the Customer s satisfaction with them, processed by the Bank to analyse and improve its products and services, to determine the financial indicators characterizing the Bank s activities, to prepare reporting and market research; (ii) Use of the Customer s contact data for delivering customer-targeted offers regarding the Bank s services and offers of cooperation partners carefully selected by the Bank (incl. for advertising and making personal offers). General and introductory information about services provided by legal persons belonging to the same group with the Bank, also information related to the administration of banking services and performing of the service contract (e.g. information regarding the expiry of the bank card or changes in the terms of the service), are not considered to be personal offers. The Customer cannot refuse from such information. 9.7. In addition to the personal data submitted by the Customer, the Bank shall be entitled to verify and supplement a Customer s personal data with data available from public sources and other legitimately accessible sources. 9.8. The list of persons whom the Bank transmits the Customer s personal data for processing (authorised processors of personal data) has been provided on the Bank s website at www.luminor.ee. The Bank shall be entitled to amend and supplement the list. Customer s rights in the processing of his/her personal data 9.9. Upon the processing of personal data the Customer shall have all the rights arising from the Personal Data Protection Act, of which the most important shall be as follows: the right to receive information from the Bank about the personal data collected about him/her within five working days as of submission of a respective application to the Bank; (ii) the right to require correction of incorrect personal data; (iii) the right to prohibit the use of his/her contact data for sending advertisements and offers; (iv) the right to require termination of personal data processing if the personal data processing is not allowed by law; (v) the right to address the Bank, the authorised processor of the personal data, the Data Protection Inspectorate or the court if the Customer finds that his/her rights have been violated upon the personal data processing. 9.10. If the Customer has submitted a request for termination of the Customer s personal data processing, the Bank shall be entitled to terminate the banking service contract without prior notice if, in the Bank s opinion, it is not reasonably possible to continue performing of the respective contract without processing of the Customer s personal data. Customer s consent for processing of his/her personal data 9.11. By granting consent to the General Terms it shall be deemed that the Customer has granted his/her consent to the Bank for processing of his/her personal data in accordance with the provisions of clause 9.6. of the General Terms and, for processing of his/her personal data, to the credit institution to whom the Bank, upon the transfer of a business, shall provide the rights and obligations arising from a contract with the Customer. 10. Entry into contract 10.1. Contracts between the Bank and the Customer shall be entered into in the written format or in any other format, unless the law prescribes a mandatory format of a contract. In the case of opening of first account to the Customer, as well as in the case of first use by the Customer of the service provided by the Bank, if this does not require possession of an account, the contract shall be entered into in the written format. Residents of United States of America or residents of other countries who reside in the United States of America during a specific term (hereinafter US person) may purchase only limited range of Bank s products or services and can be subject to an additional information processing requirements. In case the US person has obtained any of the Bank s products or services, which are restricted by United States of America, the Bank has the right to terminate those products and services unilaterally. 10.2. The Bank shall have the right to refuse to enter into a banking service contract. 10.3. The Bank may refuse to enter into a current account agreement only with good reason. In particular, the Bank may refuse to enter into a current account agreement, if the person or a person related to him/her: fails to present sufficient information and documents necessary for the identification of him/her or the person in whose interests he/she acts; (ii) has submitted, intentionally or due to gross negligence, inaccurate or insufficient information to the Bank or to a legal person belonging to the same group with the Bank or has refused to provide the information;
(iii) has submitted a document to the Bank which has signs of counterfeit or is for any other reason not in conformity with the Bank s requirements; (iv) has failed to submit, upon the request of the Bank, sufficient information or documents to prove the lawful origin of his/her financial resources or the Bank suspects him/her of money laundering or terrorist financing (incl. in being a straw man or using a straw man); (v) is according to the information known to the Bank related or has been related to organised crime, money laundering or terrorist financing; (vi) is or has been on a high public position (politically exposed person) in a country where there is a high level of corruption; (vii) is on the basis of the Bank s measures of assessment of the risk of money laundering and terrorist financing a high risk client or is active in a high risk field of activity; (viii) has an indebtedness to the Bank or to another credit institution or to another person; (ix) has caused to the Bank significant damage or there has been a real danger of causing such damage. In this section, the Bank shall be deemed to include the other legal persons belonging to the same group with the Bank. 10.4. Within the meaning of the General Terms: i) the persons related to a natural person shall be: ii) (1) all natural and legal persons whose authorised representative the person is; (2) all legal persons where the person is a member of the supervisory board, management board or other managing body; (3) all legal persons where the person holds 10% or more of the shares or votes. the persons related to a legal person shall be: (1) all natural persons who are members of the supervisory board, management board or other managing body of the legal person or its authorised representatives; (2) all natural and legal persons who hold 10% or more of the shares or votes in the legal person. 10.5. The Bank may at its own discretion decide whether to enter into a current account agreement with a person who is not the resident of Estonia (e.g. with a legal person registered in a foreign country with low tax rate). 10.6. The Bank may refuse to enter into a contract also if any international sanctions are to be implemented with regard to the person. 10.7. Upon refusal to enter into a contract the Bank shall consider carefully all the circumstances concerned and shall make the decision based on the principle of reasonableness. 11. Customer s orders 11.1. In order to dispose an account or to perform any other transaction within the scope of a contract entered into with the Bank, the Customer or his/her representative shall give such orders as agreed in the relevant contract. 11.2. The person giving the order must prove his/her right to give the order in a manner acceptable to the Bank. The Bank has the right to refuse to execute the order if the Bank suspects that the person giving the order has no authority to do so. In this case the Bank shall not be liable for damage caused by its refusal to execute the order. 11.3. Orders for performing transactions shall be given to the Bank in writing or in any other manner as agreed between the parties. 11.4. The Bank is entitled to presume that the order given pursuant to the relevant banking service contract corresponds to the actual intention of the Customer. 11.5. The Bank shall only execute orders that have been drawn up and forwarded in accordance with the requirements of the Bank, are unambiguous and executable. If the order is not clear the Bank may request additional information or documents from the Customer and postpone execution of the order until such information or documents are received. 11.6. In case the acquisition of additional instructions from the Customer is complicated or impossible, the Bank may deviate from the order given by the Customer, if in the opinion of the Bank this is in the interests of the Customer and if, based on the circumstances, the Bank can presume that the Customer would approve such action. 11.7. The Customer shall be obliged to take all reasonable measures in order to create such prerequisites and conditions as are necessary for executing the Customer s orders. 11.8. The Bank has the right to record the orders and notices communicated to the Bank by the Customer via telephone or via other means of communication and, if necessary, use such recordings to verify the relevant orders or notices. 11.9. The Bank shall execute the orders within the terms specified in legal acts and in the Service Terms.
11.10. The Customer has the right to cancel the order, unless the Bank has already executed the order or has undertaken obligations with respect to third parties to execute the order. The Bank has the right to refuse to cancel the order that has been accepted for execution. 12. Settlements in foreign currency 12.1. The Bank has the right to apply to foreign currency transactions performed by the Customer all conditions and restrictions established in the country of origin of such currency and which affect the Bank in executing transactions involving such foreign currency. 12.2. The Bank has the right to postpone or apply restrictions to the performance of obligations undertaken in a foreign currency, if such postponement or application of restrictions is caused by circumstances of force majeure in the country of origin of the relevant foreign currency. 12.3. Bank shall be entitled to unilaterally close Customer s account (which is not EUR account) in case the servicing of the account becomes impossible due to reasons not dependent on the Bank, including when correspondent bank or other involved service provider ceases to provide services to the Bank in the specific currency of the respective account. In such case the Bank sets a term for the Customer to make conversion of the funds held on the account to be closed and to transfer the funds to another account. In case the Customer does not perform bank s request within the set term, the Bank shall make the conversion (using the exchange rate valid in the Bank at the time of the conversion) and transfers the funds to Customer s EUR account. 12.4. Obligations nominated in a foreign currency shall be settled in the same currency, unless otherwise agreed. 13. Erroneous transactions 13.1. If money or other assets have been erroneously transferred to the Customer s account, the Customer shall be obliged to notify the Bank thereof immediately after discovering such erroneous transfer. 13.2. The Bank has the right to make a correcting entry to the Customer s account to remove the money or other assets erroneously transferred to that account. 13.3. The Customer shall be obliged to count all amounts in cash before payment thereof into the account and all amounts withdrawn in cash from the account immediately upon receipt thereof and make any complaints promptly on the spot. The Bank has no obligation to take into account any complaints filed later. 14. Delay by the Bank 14.1. In the case of a delay in the execution of an order, the Bank shall pay the Customer a default interest on the basis of the rate prescribed by law. The default interest is calculated on the delayed amount and for the delayed time. 14.2. The Bank shall not be liable for the delay in the execution of an order if such delay was caused by the Customer s failure to draw up or deliver the order pursuant to the Bank s requirements, or if the delay was caused due to other circumstances depending on the Customer. 15. The rights of the Bank at prevention of money laundering and terrorist financing 15.1. In order to prevent money laundering and terrorist financing, the Bank has the right to: i) request upon entering into a contract and during the validity of the contract information from the customer, which would inter alia indicate to the customer s exact area of activity, main contractual partners, ultimate beneficial owner, ownership and control structure, turnover, proportion of cash and non-cash transactions, frequency of transactions, and any accounts in other banks; ii) iii) iv) request additional information from the customer in order to find out the sources and origin of the money or other assets used in transactions, incl. to get from the customer documents forming basis of the transaction (e.g. sales contracts, consignment notes, customs documents, invoices) and/or information about the counterparty of the transaction, the ultimate beneficial owner or other legal or natural person related to the transaction; upon suspicion not to accept for execution an order whose details are missing or are insufficient; regularly check the information collected for fulfilment of the due diligence measures required by law and request from the customer submission of additional documents. The customer shall be obliged to submit the requested documents and give relevant information; v) establish temporary or permanent restrictions on using the banking services or delay with fulfilment of the customer s order. 15.2. The Bank is entitled to refuse to perform a transaction, including to return the funds received for crediting the Customer s account to the remitter, if the Customer has not submitted the information or documents requested by the Bank or if on the basis of the information and/or the documents submitted, the Bank will have suspicions that there might be the case of money laundering or terrorist financing or if the Customer is subject to international sanctions.
16. Service fees 16.1. The Customer shall pay a fee for the services of the Bank pursuant to the Price List or a separate agreement between the parties. 16.2. The Customer shall pay the Bank for the services not specified in the Price List or in a separate agreement based on the actual costs incurred by the Bank when rendering such service. In this case the Customer has the right to request a copy of an invoice. 16.3. Upon termination of a banking service contract, the Bank shall return the prepayments of service fees proportionally, taking into account the actual costs made for rendering the service. 16.4. The Bank shall debit the due amount from the Customer s account related to the relevant service without any additional order by the Customer. Should the funds on the relevant account be insufficient to debit the whole amount due, the Bank is entitled, without any additional order by the Customer, to debit the missing amount from the Customer s other accounts and, if necessary, make a conversion of currencies using the exchange rate valid in the Bank at the time of the conversion. 16.5. If the payment for the banking service is made in a foreign currency the Bank shall perform the conversion using the exchange rate valid in the Bank at the time of the conversion. 16.6. The Customer has the obligation to keep sufficient funds on the account in order for the Bank to be able to debit any amount due from the account without exceeding the available balance of the account. The Bank also has the right to debit any amount due from the account of the Customer in the event that as a result of thereof the available balance of the account will be exceeded. 16.7. Should the funds on the account be insufficient to cover all obligations due, the Bank has the right to determine in which order the service fees and other amounts due are debited. 17. Liability 17.1. Each party shall only be liable for any direct financial loss and damage caused to the other party by non-performance or defective performance of its obligations. The above limitation of liability does not apply if the damage was caused intentionally or due to gross negligence, or if otherwise provided by a mandatory provision of law or by a contract between the parties. 17.2. In the case of a delay in the performance of an obligation or other breach thereof the Customer shall pay the Bank default interest or a penalty fee as specified in the Price List or in a separate agreement between the parties. The Bank shall calculate the default interest on the delayed amount from the due date until the date of settlement thereof. 17.3. In addition to the default interest the Customer shall pay the Bank a fee for processing the delayed amount according to the Price List. In addition, the Customer shall indemnify the Bank for the costs of collection of the debt to the extent that these exceed the fee for processing the delayed amount. 17.4. If the Customer uses a representative to exercise his/her rights or perform his/her obligations or if a third party performs an obligation of the Customer with the latter s consent, the Customer shall be liable for the activities of and for any loss and damage caused by such person. 17.5. A party shall not be liable for non-performance or defective performance of its obligations if the party can prove that it was caused by circumstances of force majeure. Among other things the parties deem as force majeure also a power supply cut, failure of communication lines, enforcement or amendment of a legal act, as well as other circumstances obstructing performance of the obligation, which were beyond the control of the defaulting party and which that party could not be reasonably expected to foresee or prevent. 17.6. If the Customer has failed to perform the obligation to inform the Bank, the latter shall only be liable for any direct financial loss and damage arising therefrom if the damage was caused due to gross negligence of the Bank. 17.7. The Bank shall not be liable for any loss and damage sustained by the Customer as a result of changes in foreign exchange rates, fall in securities prices or other risks related to investment activities. 18. Blocking and seizure of account or service 18.1. Blocking of an account or a service means partial or full suspension of transactions with money or other assets on the account. An account or a service may be blocked either on the initiative of the Bank or the Customer. 18.2. The Bank shall block an account or a service on the basis of a written order by the Customer or an order communicated to the Bank in any other manner as agreed between the Bank and the Customer. 18.3. In case the order to block an account is given orally and it is complicated to identify the person giving the order (e.g. in case the order is given via telephone or if the identity document has been stolen or lost), the Bank has the right to ask such person questions about the Customer seeking to block the account, based on the information contained in the Bank s database, in order to verify the right of the person to give the blocking order. The Bank is not liable for damage caused by not blocking the account or the service if the person giving the blocking order fails to sufficiently prove his/her right to give such order.
18.4. The Bank shall unblock the account or the service blocked on the initiative of the Customer on the basis of the relevant order by the Customer. 18.5. The Bank shall have the right to block an account of the Customer, if: the Customer has not submitted documents or information which the Bank requests in relation to the fulfilment of the due diligence measures required by law; (ii) the Bank suspects the Customer of money laundering or terrorist financing or other crime or promotion thereof; (iii) the Bank has become aware of circumstances which give rise to a need to specify the lawful origin of the Customer s money or other assets; (iv) the Customer has failed to perform a payment obligation due to the Bank or the Bank becomes aware of any other circumstance which gives reason to believe that the owner of the account will not or will not be able to fulfil his/her current or future payment obligation before the Bank; (v) upon using a payment means related to the availability of credit, there occurs substantial increase in the threat that the Customer does not have sufficient funds to fulfil its payment obligation; (vi) contradictory information or documents, the accuracy of which the Bank has reason to doubt, have been submitted to the Bank about the persons authorised to use the account; (vii) the Customer's account is seized; (viii) documents have been presented to the Bank about the death of the Customer or deletion from the register of a legal person. 18.6. The Bank shall unblock the account or the service blocked on its own initiative if the circumstances that served as basis for blocking cease to exist. 18.7. The Bank shall not be liable for any loss and damage caused by blocking the account or the service. 18.8. An account of a Customer shall be seized on the grounds and in accordance with the procedure prescribed by law. The Bank shall release the account from seizure on the basis of a decision made by the person or body who issued the decision, ruling or precept to seize the account, or on the basis of a court ruling or judgement that has entered into force. 19. Termination of banking service contract 19.1. The Customer is entitled to terminate the banking service contract at any time, notifying the Bank thereof at least one month in advance. 19.2. A banking service contract without a specified term may cancelled by the Bank at any time, notifying the Customer thereof at least two months in advance. 19.3. The Bank is entitled, with good reason, to terminate a banking service contract without an advance notice. A good reason in particular exists if: the Customer or a legal person related to the Customer has not submitted, upon request of the Bank sufficient information or documents to identify itself or to prove the lawful origin of his/her financial resources or other assets or if the information and documents submitted do not eliminate the Bank s suspicion with regard to the identity of the Customer or the potential relation of its business activities with money laundering or terrorist financing or illegal transactions; (ii) the Bank has in respect of the Customer or a person related to the Customer suspicions of money laundering or terrorist financing or using the straw men; (iii) the Customer or a legal person related to the Customer has submitted, intentionally or due to gross negligence, inaccurate or insufficient information to the Bank, has failed to notify the Bank of significant changes in the information submitted to the Bank or has refused to provide the information; (iv) a document submitted by the Customer to the Bank has signs of counterfeit; (v) the Customer has repeatedly failed to fulfil a payment obligation to the Bank or such obligation has been delayed for a long time or if the Customer has breached the contract with the Bank in any other manner repeatedly or intentionally; (vi) the Customer or a legal person related to the Customer has caused to the Bank significant damage or there has been a real danger of causing such damage; (vii) the Customer has been declared bankrupt or liquidation proceedings have been initiated with respect to the Customer; (viii) the Customer has submitted a request for termination of the Customer s personal data processing and, in the opinion of the Bank, it is not reasonably possible to continue performing of the respective contract without processing of the Customer s personal data.
In this section, the Bank shall be deemed to include the other legal persons belonging to the same group with the Bank. 19.4. Upon termination of a contract the Bank shall consider carefully all the circumstances concerned and shall make the decision based on the principle of reasonableness. 20. Settlement of disputes 20.1. The Bank and the Customer attempt to resolve any disputes as soon as they arise. Upon failure to resolve the dispute promptly on the spot, each party has the right to file a written complaint to the other party. Written complaints to the Bank may be submitted in the Bank office, by mail, through the internet bank or by e-mailing info@luminor.ee. 20.2. In addition to specifying the circumstances related to the dispute, the complaint must also make reference to the legal act or document on the basis of which the complaint is filed. If such document is not available to the other party, the party filing the complaint must also append the document to the complaint. 20.3. The party against whom a complaint is made must respond within a reasonable period of time. The Bank shall respond to the complaint from the Customer within 15 (fifteen) days after receipt of the complaint. If the Bank deems that responding to the complaint is not possible within the mentioned period for reasons independent of the Bank due to the complexity of the complaint or in case further circumstances need to be clarified, the Bank shall notify the Customer of the situation and set a further term during which the complaint shall be responded to, which shall not be longer than 35 (thirty five) days. 20.4. Upon failure to resolve the dispute by means of negotiations each party has the right to file a claim with a court of law for resolving the dispute. A Customer who is a consumer shall be entitled to submit a complaint to the Consumer Protection Board before filing an action. 20.5. An action against the Bank shall be filed in a court of law of the seat of the Bank. 20.6. Supervision of the Bank shall be performed by the Financial Supervision Authority, address Sakala 4, 15030 Tallinn, telephone 6680 500, fax 6680 501, e-mail info@fi.ee, homepage www.fi.ee.