Latvian lender ABLV Bank has decided to enter into voluntary liquidation to protect the interests of its clients and creditors.

The decision was taken at the extraordinary general shareholders’ meeting of the bank.

In a statement, ABLV Bank said that liquidation will help to protect its assets for settlement with all clients.

ABLV Bank chairman of the board Ernests Bernis said: “Taking into account the insolvency and liquidation procedures that had taken place in Latvia before, we believe that this is the best option we could have made after the statement of the European Central Bank regarding commencement of winding up procedures.

“The financial standing of the bank is excellent, therefore we should take good care about every client and protect their rights.

“This has been a hard decision, but it is the most suitable one in the given circumstances.”

Earlier this month, the US Treasury’s Financial Crimes Enforcement Network accused the privately-owned bank of engaging in money laundering schemes and bribery, which the bank had denied.

The accusations were followed by the regulator European Central Bank’s (ECB) decision to suspend all ABLV Bank payments due to its poor financial condition.

Later, ECB determined that the Latvian bank is failing or likely to fail, and it would be be wound up by local authorities.