EMCC European Monitoring Centre on Change

ABLV Bank

Company/Organisation:
ABLV Bank

Geographic Location

Country: Latvia
Region: Riga; Latvija
Location of affected unit(s): Riga

Company

Sector: Financial services
Financial and insurance activities
64 - Financial service activities, except insurance and pension funding
Number Employed: 900
Group: ABLV Bank

Employment Effects

Announcement Date: 27-02-2018
Planned Job Reductions min: 300
Planned Job Reductions max: 900
Type of Restructuring: Bankruptcy
Employment Effect Start: 04-03-2018
Foreseen End Date: 10-03-2018
Direct Dismissals: 300

Additional Information

On 27 February 2018, the CEO of the bank announced in a press conference that ABLV bank is going to lay off 300 employees next week. He said that the bank is laying off finance and marketing experts, among others. The bank has more than 900 employees in total.

On 13 February 13 2018, the USA Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a notice accusing ABLV Bank of money laundering. ABLV was promptly denied US dollar funding. Following this announcement, the bank experienced a massive withdrawal of deposits, and a lack of access to US dollar funding.

ABLV Bank is the third-largest bank in Latvia. ABLV Bank is one of three banks supervised directly by the European Central Bank in addition to the Latvia’s financial sector supervisor Financial and Capital Markets Commission (FKTK).