FKTK is imposing a fine of EUR 57,217 on ABLV Asset Management, IPAS which has agreed on measures to be taken to ensure an internal control system for the prevention of money laundering and combating terrorism and proliferation financing (AML/CTPF).
"As part of administrative proceedings, the FKTK identified infringements of the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing (AML law), namely, ABLV Asset Management, IPAS had not ensured the establishment of internal control system for the AML/CTPF to adequately manage ML/TPF risks inherent to the funds’ investors," the regulator said.
'In order to protect the interests of fund investors of ABLV Asset Management, IPAS and to comply with the AML/CTPF regulatory requirements, with entering into the administrative agreement ABLV Asset Management, IPAS has undertaken to fulfil a number of legal obligations, including the submission of its further action plan to the FCMC within the specified timeframe and to ensure an independent enhanced due diligence of the fund investors managed by ABLV Asset Management, IPAS, involving an independent external service provider. Besides, given that ABLV Asset Management, IPAS had suspended the issue and redemption of investment certificates of investment funds managed by it on 19.02.2018, the administrative agreement provides for an obligation not to issue new investment certificates of investment funds until the establishment of the internal control system for the management of ML/TPF and sanctions risks associated with the new fund investors," it said.
The FKTK noted that ABLV Asset Management, IPAS had acknowledged infringements and had already taken a number of steps to address the infringements identified, as well as committed to eliminate them entirely.
Parent company ABLV bank collapsed in February 2018 amid allegations of money-laundering from the U.S. authorities and has been in the process of liquidation ever since.