FCMC fines ABLV Asset Management with EUR 57,217 for breaches of AML/CTPF laws

RIGA - The Financial and Capital Market Commission (FCMC) has imposed a fine of EUR 57,217 on ABLV Asset Management for breaches of anti-money laundering and counter-terrorism and proliferation financing (AML/CTPF) laws, the regulator informed LETA. 

The FCMC and ABLV Asset Management, have entered into an administrative agreement, imposing a fine of EUR 57 217 on ABLV Asset Management, and agreeing on the measures to be taken to ensure an internal control system for the prevention of money laundering and combating terrorism and proliferation financing, the FCMC said.

As part of administrative proceedings, the FCMC identified infringements of the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing (AML law), namely, ABLV Asset Management had not ensured the establishment of internal control system for the AML/CTPF to adequately manage ML/TPF risks inherent to the funds’ investors.

In order to protect the interests of fund investors of ABLV Asset Management and to comply with the AML/CTPF regulatory requirements, with entering into the administrative agreement ABLV Asset Management has undertaken to fulfil a number of legal obligations, including the submission of its further action plan to the FCMC within the specified timeframe and to ensure an independent enhanced due diligence of the fund investors managed by ABLV Asset Management involving an independent external service provider. 

Besides, given that ABLV Asset Management had suspended the issue and redemption of investment certificates of investment funds managed by it on February 19, 2018, the administrative agreement provides for an obligation not to issue new investment certificates of investment funds until the establishment of the internal control system for the management of ML/TPF and sanctions risks associated with the new fund investors.

In deciding on the entering into the administrative agreement and applying the fine, the FCMC noted that ABLV Asset Management had acknowledged infringements within the administrative proceedings, had already taken a number of steps to address the infringements identified, as well as committed to eliminate them entirely, the regulator said.

Registered in 2006, ABLV Asset Management has a share capital of EUR 650,000. The company's beneficial owners are Olegs Fils and Nika Berne, according to information available from Firmas.lv.