Banks, Financial Services, Latvia, Legislation, USA
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Wednesday, 28.05.2025, 22:56
EUR 600 mln withdrawn from ABLV Bank since US FinCEN announced on planned sanctions
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ABLV Bank’s deputy board chairman Vadims Reinfelds said that the bank’s self capital on February 16
was EUR 369.115 million, the capital adequacy ratio was 21.26%, and the
liquidity ratio was 74.67%. Reinfelds underscored that these ratios are well
above the level required by the regulator – 13.75% and 55% respectively.
The bank’s securities portfolio consists of EUR 1.5
billion worth of bonds or 99%, while the rest are shares and funds.
Bernis underscored that the decision of the European
Central Bank (ECB) to set restrictions on payments of ABLV Bank is in the
bank’s own good so that it can stabilize the situation. He admitted that some
time is required to stabilize operations of ABLV Bank.
Before the ECB’s decision ABLV Bank was able to
settle all payments, except for payments in US dollars. Bernis confirmed that
the bank’s funds have not been arrested.
On February 20, ABLV Bank representatives will
present to the ECB its new stabilization plan and the plan for the coming week.
These plans will also be submitted to the Finance and Capital Market
Commission.
As reported, the Latvian financial regulator, the
Finance and Capital Market Commission, acting on the instructions from the European
Central Bank (ECB), has ordered ABLV Bank to stop all payments as
of February 19. The ECB said that the decision was necessary to give ABLV Bank time to take
steps to towards stabilization of the situation.
Last week the Financial Crimes Enforcement Network
(FinCEN) of the U.S. Department of Treasury 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 it will
make every effort to disprove the allegations.
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