Banks, Financial Services, Latvia, Legislation

He said that the bank’s management took the decision in order not to cast a shadow on the whole Latvian banking sector while ABLV is dealing with “baseless accusations”.

“ABLV bank is confident that by explaining its position and collaborating with the U.S. Department of Treasury it will manage to restore not only its own but the whole sector’s reputation. The bank believes that the Association of Latvian Commercial Banks will defend the Latvian banking sector and financial market participants on the national and international level,” said 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.

ABLV bank said 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.

ABLV bank representatives also said that the bank and its officials have never given any bribes.

At the end of September 2017, ABLV bank was the third largest bank in Latvia by assets. The bank's majority shareholders Olegs Fils, Ernests Bernis and Nika Berne own, directly and indirectly, 87.03 percent of the bank's share capital. ABLV bank’s bonds are quoted on the Nasdaq Riga Bond List. ABLV bank is under direct supervision of the European Central Bank.