The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has proposed new sanctions against Latvian entity ABLV Bank over money laundering concerns.
In a statement, FinCEN proposed to prohibit ABLV Bank from opening or maintaining a correspondent account in the US.
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The authority proposed the new sanctions based on its findings that ABLV has been associated with money laundering and its management allowed employees to carry money laundering schemes.
The probe also found that the bank solicited high-risk shell company activity, maintained inadequate controls over high-risk shell company accounts and obstructed enforcement of anti-money laundering measures as well as anti-terrorism financing measures.
Due to its failure to implement the measures and deploy effective AML/CFT and sanctions policies, the bank attracted illicit actors engaged in organised crime, weapons proliferation and sanctions evasion.
It was alleged that the bank facilitated transactions for corrupt people as well as its financial activity included transactions for parties associated with North Korea’s procurement or export of ballistic missiles.
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By GlobalDataUS Secretary of the Treasury Steven Mnuchin said: “FinCEN will continue to take action against foreign banks that disregard anti-money laundering safeguards and become conduits for widespread illicit activity.
“Deficient practices at banks foster a wide array of illicit conduct, including activity linked to North Korea’s weapons program and corruption connected to Russia and Ukraine.
“FinCEN is committed to protecting the U.S. financial system from these types of risks.”
