Banks, Financial Services, Investments, Latvia

Observation status will be applied according to Nasdaq Riga rules, which stipulates that the issuer shall be placed on the observation list if other circumstances influencing the issuer’s activity have occurred which may threaten the interests of the investors, and in cases when it is important to turn the attention of market participants to a circumstance related to the relevant financial instrument or its issuer.

"We are informed about the decision made by the stock exchange. It is a standard procedure that the stock exchange applies, and it does not impose any restrictions. It is a way to inform investors and attract their attention about the issuers. ABLV Bank currently meets all its obligations in relation to bonds, and the report of FinCEN does not affect the holders of the bonds. Once more we confirm that the financial condition of the bank and adequacy of financial resources are sufficient," said ABLV Bank’s spokesman Arturs Eglitis.

As reported, the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury has proposed sanctions against ABLV Bank for its role in money laundering schemes that have been facilitating transactions for parties connected to North Korea’s nuclear program and illegal activities in Azerbaijan, Russia and Ukraine.

FinCEN also said in its report that the management of ABLV Bank used bribery to influence Latvian officials when challenging enforcement actions and perceived threats to their high-risk business.

According to the FinCEN report, ABLV Bank’s business practices enable the provision of financial services to clients seeking to evade financial regulatory requirements. Bank executives and employees are complicit in their clients’ illicit financial activities, including money laundering and the use of shell companies to conceal the true nature of illicit transactions and the identities of those responsible.

The bank’s representatives, meanwhile, said that Latvia’s ABLV Bank and its officials have never given any bribes, therefore the bank finds the report released by FinCEN utterly unacceptable.

The bank has turned to the law enforcement institutions – the Corruption Prevention Bureau and the State Police – asking them to probe the statements voiced by FinCEN. "Neither the bank, nor the bank’s employees have ever given any bribe to any state official,” said Reinfelds, adding that such grave accusations seriously harm the bank’s reputation.

Representatives of ABLV also indicated that the FinCEN report is the department’s proposal which can be objected to within 60 days. The Latvian bank is currently weighing its options as it hopes to persuade FinCEN to revise its proposal. "The bank will make every effort to disprove the allegations," the bank said.