Latvian banking regulator Financial and Capital Market Commission (FCMC) has approved the self-liquidation of ABLV Bank.

The decision, taken at FCMC’s extraordinary meeting, will enable the bank to commence the voluntary liquidation process.

The bank applied for voluntary liquidation in February this year following accusations of money laundering.

The decision was taken to protect the rights and interests of its customers and creditors, the bank stated in the draft voluntary liquidation plan which was submitted to the FCMC.

FCMC approved it after evaluating the plan and related documents submitted by the bank, as well as ABLV Bank’s capacity to fulfil the obligations to its creditors within a stipulated time.

During the liquidation, FCMC will continue to supervise the whole process to prevent any scope of money laundering.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The banking regulator also noted that the European Central Bank (ECB) has been apprised of the decision.

FCMC chairman Pēters Putniņš said: “FCMC Board’s decision, which is truly aimed at protecting the interests of creditors in the course of winding-up the Bank, is the logical outcome through hard and patient work of the FCMC experts for more than three months that leaves no room for false assumptions.

“This is an unprecedented solution to the winding-up of the bank in Latvia. We believe that in this case, of all forms of liquidation, the controlled self-imposed liquidation will ensure the further involvement of the FCMC and, if necessary, also the possibility to exert its influence on the ongoing voluntary liquidation process, including the protection of Bank’s assets and control over the payable amount in order to prevent any money laundering during the process.”

In February, the US Department of the Treasury’s Financial Crimes Enforcement Network sought new sanctions against ABLV Bank over money laundering charges. A week later, ECB suspended all further ABLV transactions citing the bank’s poor financial condition.