FCMC Board adopts methodology for screening ABLV Bank AS customers

On 5 March 2018, the decision of the Bank’s shareholders meeting on the voluntary liquidation process, as well as draft self-liquidation plan was submitted to the FCMC. Whereas on 12 June 2018, the FCMC Board approved the Bank’s voluntary liquidation plan. A team of sworn auditors from the international company Ernst&Young developed the methodology for the AML/CFT and sanctions compliance checks to prevent possible AML and violation/circumventing of sanctions compliance provisions in the course of pay-outs to the Bank’s customers.

FCMC Chairman Pēters Putniņš: “In this process, the FCMC as the banking supervisor, in line with the spirit of our rule was guided by two motives: protecting the interests of the Bank’s depositors by ensuring the disbursement of their funds, and controlling and reporting suspicious money, if any, to the relevant authorities. These two issues must be balanced and will be supported by the newly agreed methodology. The views have been different and there have been heated arguments, as a result the process was protracted, but now the voluntary liquidation process of the Bank started a year ago can move further under the control of the FCMC. In order to launch the application of the methodology and introduction of the pay-out mechanism, the methodology itself had to be developed and we also had to receive the support of the Control Service. The approval process was completed this week and we immediately moved on issuing a relevant decision by the FCMC Board. On our part, great efforts have been made during this period, namely, over 1000 corrections and our proposals have been included in the methodology. In Latvia, the liquidation of the Bank in this manner takes place for the first time, therefore reaching an optimal solution acceptable to everyone certainly took time. I would like to emphasise that the voluntary liquidation, which is closely and specifically monitored by the FCMC, is the way in which we can perfectly exercise additional control over creditors’ money in order to prevent the illegal money from returning to the Latvian financial system.”

In the near future, the group of FCMC authorised persons will carry out an on-site inspection of the Bank as part of the methodology implementation and application phases in order to ensure compliance with the requirements defined in the methodology. In the future, the pay-out schedules to the creditors, whose compliance checks have been already carried out and provided that they meet the provisions of the methodology, will be drawn up at regular intervals in line with the phases of winding-up process. The FCMC will continue monitoring the pay-out process and compliance with the approved methodology, as well as the activities of liquidators in the management of assets in order to protect the interests of Bank’s creditors. More information about the tasks for the FCMC in the Bank’s liquidation process on the website at: http://www.fktk.lv/en/media-room/other-publications/fcmc-in-control-of-ablv-bank-as-voluntary-liquidation-procedure.html The FCMC will continue the monitoring of liquidators’ activities until completion of voluntary liquidation process in accordance with the Credit Institution Law and control mechanism established by the methodology in order to ensure the legality of the process and protection of creditors’ interests. Further information: Ieva Upleja Head of Communications Division Financial and Capital Market Commission Phone: + 371 67774807; e-mail: ieva.upleja@fktk.lv