trending Market Intelligence /marketintelligence/en/news-insights/trending/vyqw0vha4x2vcch1j1orha2 content esgSubNav
In This List

Latvian regulator clears ABLV Bank's voluntary liquidation

Blog

Banking Essentials Newsletter: January 11th Edition

Blog

Banking Essentials Newsletter December 21st Edition

Blog

The Road to Basel IV: Navigating the challenge facing European banks

Blog

Basel Framework- Utilizing data to analyze the capital position of European banks.


Latvian regulator clears ABLV Bank's voluntary liquidation

Latvia's Financial and Capital Market Commission cleared the voluntary liquidation of troubled lender ABLV Bank AS, which has been at the center of a crisis involving money laundering and terrorist financing.

The regulator said June 12 that the bank has a "sufficient amount of assets to meet the interests of all creditors," and that it will continue to monitor the liquidation process and to ensure that control mechanisms are in place to prevent money laundering.

In late February, shareholders of ABLV decided on the voluntary liquidation to safeguard its assets for settlement with all clients, with Chairman Ernests Bernis saying then that the move "is the best option we could have made after the statement of the European Central Bank regarding commencement of winding up procedures."

The FCMC appointed Arvids Kostomarovs, Andris Kovalcuks, Elvijs Vebers and Eva Berlaus liquidators of the bank.

The U.S. sanctioned ABLV in February amid allegations of money laundering, which led to the ECB declaring it "failing or likely to fail." The matter also shed light on issues of financial crime control and corruption in the country, attracting the attention of EU officials.

The FCMC said the ECB has been informed of the decision and that it will prepare a draft decision on the withdrawal of ABLV's authorization. Creditor claims can be submitted for three months after the notice of the move is published in the government gazette.