License of Latvia's ABLV Bank withdrawn

Source: Xinhua| 2018-07-13 03:10:58|Editor: Mu Xuequan
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RIGA, July 12 (Xinhua) -- The European Central Bank (ECB) has decided to withdraw the license of Latvia's ABLV Bank which currently is in the process of self-imposed liquidation, the Latvian banking regulator said on Thursday.

The ECB decision has been made following a proposal of the Latvian Financial and Capital Market Commission (FCMC) submitted for consideration to the ECB, based on the March 3, 2018 decision by ABLV shareholders' meeting regarding their intent to implement a voluntary liquidation procedure, as well as a proposed draft voluntary liquidation plan and the June 12, 2018 decision adopted by the FCMC to authorise the commencement of voluntary liquidation process, the regulator said in a statement.

"This is an intentional and logical step in the process of the bank's voluntary liquidation and it does not in any way affect the course of voluntary liquidation. The FCMC continues the supervision of the voluntary liquidation process according to the approved plan and procedures," said FCMC chairman Peters Putnins.

The draft decision on withdrawing ABLV Bank's license was submitted to the ECB on June 12, and took effect on July 11, the Latvian banking regulator said.

On June 18, the bank's liquidator published in Latvia's official gazette Latvijas Vestnesis an announcement on ABLV Bank's liquidation, marking the beginning of a three-month period for filing creditors' claims. The withdrawal of the bank's license will have no effect on the creditors' claims, the regulator said.

Following the withdrawal of ABLV Bank's license, Nasdaq Baltic informed on Thursday that it is terminating the collapsed bank's membership on the stock exchange.

In February this year, ABLV Bank's shareholders decided to wind the bank up after the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) issued a report accusing the Latvian bank's management of supporting money-laundering schemes and bribing Latvian officials.