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ABLV Bank to commence repayment of guaranteed compensations on 3 March

Publicity photo.
On Saturday, 3 March, ABLV Bank will commence repayment of guaranteed compensations to its clients, as confirmed by Finance and Capital Market Commission.

Repayment of compensations under EUR 100,000 will be performed by the bank picked by FCMC on 3 March.

The commission did not reveal which bank will assist with repayment of compensations. «FCMC council has picked and signed an agreement with a commercial bank in Latvia  based on the possibility of providing clients with beneficial conditions and quick repayment of their compensation,» FCMC reports.

The commission notes that funding from Latvia’s National Guarantee Fund will not be used, because ABLV Bank has sufficient finances. Repayment of guaranteed compensations requires EUR 480 million, which ABLV Bank has already transferred to FCMC’s account.

As it is known, European Central Bank made the decision to commence the liquidation process, which is to be realized in accordance with Latvia’s laws.

Following ECB’s instructions, FCMC applied payment restrictions on ABLV Bank on 19 February. Because ECB gave no instructions to lift restrictions, FCMC decided on the night to 24 February that unavailability of deposits took place in ABLV Bank.

ABLV Bank admits the decision made by FCMC means liquidation process will soon commence. ABLV Bank links the commission’s decision with political reasons.

Problems for ABLV Bank started when Financial Crimes Enforcement Network (FinCEN) of US Department of Treasury announced in the middle of February that it plans to establish sanctions against ABLV Bank for money laundering activities that had assisted with North Korea’s nuclear arms programme, as well as illegal activities in Azerbaijan, Russia and Ukraine.

The report published by FinCEN details that until 2017 the management of ABLV Bank had been using bribery to influence officials in Latvia in an attempt to avoid legal action and threats to its high-risk operations.


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