AML Policy

In terms of law, money laundering means legalising the proceeds of crime, i.e. actions that conceal the source of funds in order to make their nature lawful.

Anti-money laundering (AML) incorporates a complex of measures aimed at prevention of use of the financial system of the country or any specific financial institution for money laundering or terrorist financing. Such measures and instruments are worked out and implemented by international and national institutions, banking and business community.

Our approach

Financial institutions employ different approaches to anti-money laundering that help preventing cases of laundering of the proceeds of crime and terrorist financing.

Under its AML Policy, ABLV Bank, AS, in its operations implements the specific measures listed below.

  • Our bank’s organisational structure has a top executive who is in charge of supervision over compliance with the ABLV Bank, AS, policies and procedures, the world banking practice and AML regulatory enactments.
  • We trust highly competent personnel of our bank who works in close contact with our customers. These are both customer service specialists and heads of departments and divisions. As part of its Customer Policy, the bank has Know Your Customer program in place aimed at full understanding and knowledge of our business partners.
  • We improve our AML policy and procedures continuously, and they comply with the requirements of Latvian law and even excel such requirements in some aspects. We make considerable investments in this process and ensure continuous training of our personnel in this area.
  • We purchase and work out independently new technologies that enable us to prevent possible attempts of money laundering.
  • We understand that anti-money laundering and combating terrorist financing is a continuous process that requires constant attention and ability to monitor unlawful financial schemes.
  • We comply with the legal requirements of the Republic of Latvia for anti-money laundering. In cases set forth in the relevant legal enactments, the bank co-operates with officials and government institutions of the Republic of Latvia.

The key normative acts on AML adopted and effective in Latvia are as follows:

  • the Law of the Republic of Latvia “On the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and Terrorism Financing”, which regulates and stipulates implementation of and compliance with various special measures and procedures, aimed at minimizing money laundering and financing of terrorism, as well as determines the circle of subjects of the law, their obligations, rights, and liability. The law incorporates requirements of the European Union Directives 2005/60/EC and 2006/70/EC, which are adapted to Latvian normative acts and supplemented with national regulation;
  • Regulation No. 1071 of 22.12.2008 of the Republic of Latvia Cabinet of Ministers “Regulation on unusual transaction indicator list and procedure for reporting unusual and suspicious transactions”. The Regulation is adapted pursuant to the Law “On the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and Terrorism Financing”, and sets forth the list of indicators of unusual transactions, as well as procedures for reporting unusual and suspicious transactions to the competent state authorities;
  • Regulation No. 125 of 27.08.2008 of the Republic of Latvia Financial and Capital Market Commission “Regulations on Enhanced Customer Due Diligence”. The Regulation is adapted pursuant to the Law “On the Prevention of Laundering the Proceeds from Criminal Activity (Money Laundering) and Terrorism Financing”, and specifies the instances on which financial institutions are obliged to perform enhanced customer due diligence, the procedure for and the minimum extent of the enhanced customer due diligence, the categories of money laundering and terrorism financing risks and their respective risk indicators, special measures for enhanced customer due diligence, and the procedure for enhanced monitoring of customer transactions.