Banks, Financial Services, Latvia, USA

International Internet Magazine. Baltic States news & analytics Monday, 27.05.2019, 04:35

FinCEN dissociates itself from FKTK statement regarding harmonization of liquidation strategy for ABLV Bank - U.S. Embassy

BC, Riga, 15.05.2019.Print version
The Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury dissociates itself from a statement issued by Latvia's Financial and Capital Market Commission (FKTK) regarding harmonization of the liquidation strategy for ABLV Bank, as the U.S. Embassy in Riga informed LETA.

As reported, the FKTK told LETA yesterday after meeting with FinCEN representatives that it did not see any obstacles for implementation of the ABLV Bank’s liquidation model. “We have made sure that there are no significant obstacles and we can move forward in the liquidation process in line with the model approved by FKTK,” said FKTK head Peters Putnins.


Media reports and statements by the FKTK, which suggest that the FinCEN has supported the methodology for liquidation of ABLV Bank, are not accurate, the U.S. Embassy commented. The FinCEN did not discuss the methodology with the FKTK, and FinCEN did not support the methodology, the embassy pointed out.


The FinCEN only said that it had a productive meeting with the FKTK on May 7 to discuss the status of ABLV Bank's self-liquidation process, said the embassy. On February 13, 2018 FinCEN proposed, pursuant to Section 311 of the U.S. Patriot Act, to prohibit the opening or maintaining of a correspondent account in the United States for, or on behalf of, ABLV Bank, based on the FinCEN finding that ABLV was a foreign bank of primary money laundering concern.


LETA also reported, the FKTK, acting on the instructions from the European Central Bank, ordered ABLV Bank to stop all payments as of February 19, 2018 following a report by the FinCEN about ABLV Bank's involvement in international money laundering schemes and corruption. On February 24, the FKTK found an occurrence of unavailability of deposits at ABLV Bank.


Shareholders of ABLV Bank decided in February 2018 to start the liquidation process in order to protect interests of its clients and creditors. ABLV Bank believes that in this way it will be possible to ensure active protection of its customers, the bank said in a statement.







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