Methodology of Verification of Creditors Approved

Riga, Latvia, March 6, 2019, 19:13 / Banking

On 6 March 2019 the Council of the Financial and Capital Market Commission (the Commission) approved the Methodology of Verification of Creditors which is provided in the voluntary liquidation plan of ABLV Bank, AS in liquidation (the Company).

The methodology for the control of prevention of money laundering and terrorism financing (ALM/CTF) and sanctions compliance was developed by a team of international consultants from EY. The methodology will be applied to all the creditors of the Company and their associated partners. It provides certain requirements for verification of creditors taking into account best international practices and requirements of the regulatory enactments. The methodology will apply not only to independent verification of creditors, but also verification of the asset sale transactions of the Company in terms of AML/CTF and sanctions compliance.

Creditors’ verifications imply three principal stages:

  • Creditor’s identification and determination of the ultimate beneficial owner;
  • Verification of the historical payment transactions carried out by the creditor and its associated parties;
  • Verification of the creditor and its associated parties for matches in international sanctions lists.

The procedure of satisfying of the creditors’ claims shall take place under strict control of the Commission. Based on that the liquidators of the Company shall prepare the list of disbursements containing those creditors regarding whom the compliance verifications would be done and who would comply the requirements defined in the methodology. This list shall be submitted for approval to the Commission, which will supervise the disbursements and upon necessity will carry out repeated verifications of the creditors for compliance to the methodology requirements.

It is estimated that the disbursements could start in the third quarter of 2019, starting from the group of creditors that consists of depositors like individuals, micro, small and medium size companies whose deposits were not fully covered by the guaranteed compensations (exceeding EUR 100,000).

As soon as all the funds for the disbursement of funds to a certain group of creditors will be ensured, then the disbursement to creditors of the following group will start.