Latvian financial regulator approves method for screening ABLV accounts

Take note – story published 4 years ago

Latvia's financial regulator, the Financial and Capital Market Commission (FKTK) said March 7 it had finally approved the methodology for screening the customers of ABLV Bank, which collapsed a year ago, as part of its ongoing liqodation process.

The methodology has been already approved by the Office for Prevention of Laundering of Proceeds Derived from Criminal Activity (Control Service).

More than a year ago, on 5 March 2018, the decision of the Bank's shareholders meeting on what was termed a "voluntary liquidation process" was submited to FKTK, as well as a draft self-liquidation plan.

Three months later, on 12 June 2018, the FKTK Board approved the Bank's voluntary liquidation plan. A team of sworn
auditors from the international company Ernst&Young developed the methodology for the anti- money laundering and sanctions compliance checks.

FKTK Chairman Pēters Putniņš said his bureau had been "guided by two motives: protecting the interests of the Bank's depositors by ensuring the disbursement of their funds, and controlling and reporting suspicious money, if any, to the relevant authorities." 

He admitted there had been differing opinions and even "heated arguments" about this, and "as a result the process was protracted, but now the voluntary liquidation process of the Bank started a year ago can move further under the control of FKTK." 

"I would like to emphasise that the voluntary liquidation, which is closely and specifically monitored by FKTK, is the way in which we can perfectly exercise additional control over creditors' money in order to prevent the illegal money from returning to the Latvian financial system," he added.

In the "near future" FKTK officials will carry out what was called an "on-site inspection of the Bank" he promised.

The pay-out schedules to the Bank's creditors, whose compliance checks have been already carried out and provided that they meet the provisions of the methodology, will be drawn up at regular intervals in line with the phases of winding-up process, FKTK said, without specifying any dates or deadlines.


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