The European Central Bank (ECB) has requested Latvia’s Financial and Capital Markets Commission (FCMC) to impose a temporary moratorium on ABLV Bank to stop all payments by the lending firm.

The moratorium, already effective, follows the money laundering charges made by the US authorities against the Latvian ABLV bank.

The ECB stated that the imposition of the temporary moratorium was due to the sharp deterioration of the bank’s financial position.

Last week, the US Department of the Treasury’s Financial Crimes Enforcement Network proposed new sanctions against the bank over money laundering concerns in accordance to the Section 311 of the USA PATRIOT Act.

In another development, ABLV Bank presented a new plan to stabilise the bank’s financial condition to the management of ECB.

With the new plan, the bank aims to regain access to its funds and cancellation of the imposed moratorium.

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The bank also stated its intention to partially sell its securities portfolio or take a loan on these securities to achieve its goal.

As of 18 February 2018, the bank’s capital adequacy ratio was stated to be 21.26%, compared to the regulator’s minimum requirement of 13.75%.

It liquidity ratio was almost 75%, against the regulator’s set minimum of 55%.