Latvian corruption watchdog terminates ABLV Bank criminal procedure

Latvian Corruption Prevention and Combating Bureau (KNAB) has found no proof to the claims from US Department of the Treasury Office Financial Crimes Enforcement Network (FinCEN) of the top management of ABLV Bank being involved in bribery.

At the same time, KNAB found no proof to the suspicions of ABLV Bank management that the institution was intentionally defamed by the ex-governor of the Bank of Latvia Ilmārs Rimšēvičs.

KNAB confirms that 26 March the investigator in charge of the case received permission from the supervisory prosecutor to terminate the criminal procedure originally launched following the report from FinCEN.

FinCEN report mentioned that until 2017 board and management of ABLV Bank had frequently used bribery to influence Latvian officials in order to prevent possible legal measures and reduce risks for their bank’s high-risk operations.

ABLV Bank denied ever having used bribes, adding that this report caused considerable damage to the bank’s reputation. The bank then turned to KNAB with a request to investigate, because the bank does not have to authority to refute such accusations.

KNAB confirmed to LETA there aren’t any other investigations about ABLV Bank’s possible involvement in bribery now that this criminal procedure has been terminated.

KNAB was also asked to check if suspicions of the bank being intentionally defamed in exchange for bribes were justified. The criminal procedure was terminated in this direction as well, however.

Without mentioning the person’s identity, KNAB confirmed that one more state official was involved in this criminal procedure. According to LETA, this official is none other than Rimšēvičs.

KNAB explains the decision to terminate the criminal procedure because it was not possible to prove the person’s guilt during the pre-trial investigation, nor was it possible to gather additional evidence.

KNAB explains the decision on termination of criminal procedures is one of the ways they normally end. This means all previously imposed restrictions are lifted.

KNAB notes the persons who were involved in the criminal procedure and whose rights or legal interests were impacted have the right to appeal. Until the final decision on termination of the criminal procedure has come to force, KNAB is not authorized to provide more information on it.

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.