Allegedly Helps North Korea, Access Bank Payments in Latvia Terminated

European Central Bank

Liputan6, Jakarta - Latvia's third largest bank, ABLV Bank, should get severe sanctions from the European Central Bank (ECB) after allegedly assisting the North Korean government in money laundering. The sanction obtained by ABLV Bank is the dismissal of access of payments by the local central bank.

Reporting from CNBC on Thursday (22/2/2018), the ECB gave a stop payment order on Monday. According to the ECB, it took a moratorium on ABLV as the financial condition of ABLV deteriorated drastically, thus taking steps to prevent leakage of funds.

"The moratorium is considered necessary because the bank is working with the central bank and the Latvian authorities to handle the current situation," the ECB said in its official statement.

The case began when the US Treasury Department accused ABLV of joining the bank for money laundering by North Korea. According to the US, what the ALBV has done has tarnished the international agreement and ignored the sanctions being imposed by the UN.

A team of financial crime monitoring team under the US Treasury said it had detected a trade deal with one of the objects of UNSC sanctions in the ABLV bank. According to their investigations, ABLV bank management conducted a transaction with a shell company and let the money laundering process.

Therefore, it also blocked ABLV bank from the US financial system and forbade it to maintain accounts in the United States.

After the allegations, the financial condition of Bank ABLV faltered. Funds as much as 22 percent or 600 million euros in the form of savings withdrawn customers.

In response, ABLV bank did not remain silent. They reject all charges especially those addressed by the US government to him and will continue to conduct banking activities as usual.

"We have never done that, we have a zero tolerance policy related to corruption and other illicit activities," said Bank ABLV.

Prior to ABLV Bank, some Banks in Latvia also exist which have been subject to investigations in recent months. Last year, two Latvian banks were liable to fine sanctions for allowing a customer from North Korea to send money.