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Latvian bank in money-laundering saga wins bid to keep Luxembourg unit open

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Latvian bank in money-laundering saga wins bid to keep Luxembourg unit open

ABLV Bank AS, the Latvian lender which the U.S. Treasury fingered as a major conduit for international money laundering, leading to the ECB ordering it to be wound up, won a court bid to stop authorities from taking over its subsidiary in Luxembourg.

The Luxembourg Commercial Court blocked steps to put ABLV Bank Luxembourg SA into administration March 9 and named external managers for a transition period until the bank finds new investors, ABLV said.

The European Central Bank declared ABLV to be "failing or likely to fail" after the money-laundering accusations triggered deposit outflows.

"We believe that this new ruling is the best possible outcome and good news for ABLV Bank Luxembourg SA clients and staff, providing the time necessary to explore the optimal solutions," the bank said. "New investors have already expressed interest in our Luxembourg subsidiary."

A moratorium on deposit withdrawals and payment remains in place following the court order, the bank said.