ABLV bank has license revoked as liquidation continues

Latvia's financial regulator, the Financial and Capital Market Commission (FKTK) said July 12 the banking license of ABLV bank, which is currently undergoing a process of so-called "self-liquidation" had been cancelled by the European Central Bank.

FKTK said in a statement that the ECB move was normal and was taken on the recommendation  of FKTK. The decision is effective from July 12.  

FKTK chairman Peters Putniņš said "This is an intentional and logical step in the process of Bank's voluntary liquidation and it does not in any way affect the course of voluntary liquidation. FKTK continues supervision of the voluntary liquidation process according to the approved plan and procedures.”

The liquidator published a communication on the liquidation of the Bank in the official gazette "Latvijas Vēstnesis" on 18.06.2018, which marked the beginning of a three-month period for submission of creditors' claims. Submission of creditors' claims still continues and the process is not affected by the withdrawal of the authorization of the Bank. 

The submission of claims by creditors continues and the loss of the bank's license does not affect this process, the regulator said, insisting it "will further monitor the management of Bank's assets and sales transactions throughout the course of the process." 

As previously reported by LSM, ABLV collapsed after being accused of institutionalized money laundering on a huge scale by U.S. financial authorities. It marks a swift fall from favor for what was Latvia's third-largest bank and largest domestically owned bank.

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