Latvian Finance and Capital Market Commission (FKTK) reminds the clients of the now liquidated ABLV Bank to sign up for guaranteed remuneration by 23 February 2023.
FKTK notes that in accordance with the Deposit Guarantee Law, ABLV Bank clients who have the right to receive guaranteed remuneration but who do not sign up for it by 23 February 2023 will lose their right to receive guaranteed remuneration from Latvian Deposit Guarantee Fund.
«Considering the aforementioned, we invite all clients who have the right for guaranteed remuneration and who have not yet signed up for it, to do this by 23 February 2023,» FKTK stresses.
The commission also adds this invitation is not applicable to clients who do not have the right to receive remuneration or who are under restrictions to receive guaranteed remuneration.
Payment of guaranteed remuneration will be done by Citadele Bank.
In accordance with the law, 24 February 2023 will mark the end of restrictions imposed by sworn bailiffs and the tax administration for the repayment of guaranteed remuneration. These restrictions were imposed on guaranteed remuneration due to possible enforcement of finances.
ABLV Bank representative report that the total amount to be paid to clients by the Latvian Deposit Guarantee Fund is EUR 480 million and it came from ABLV Bank.
94% or EUR 452.5 million of this amount has been paid to more than 14 300 clients so far.
Despite the fact that the option to apply for guaranteed remuneration has been open for more than 4.5 years, there are still more than 8 000 clients that have not done this yet.
Problems for ABLV Bank started when US Department of Treasury Financial Crimes Enforcement Network announced in February 2018 its plans to establish sanctions against ABLV Bank for money laundering schemes that had assisted with North Korea’s nuclear arms programme, as well as illegal activities in Azerbaijan, Russia and Ukraine.
To ensure maximum protection of clients’ and creditors’ interests, and considering the decision by ECB on allowing commencement of the liquidation process, ABLV Bank’s shareholders decided at a meeting on 26 February to commence self-liquidation.