ABLV Asset Management Fined with €57,217 for AML/CFT Violations

FCMC (Financial and Capital Market Commission) has enforced a fine of €57,217 on ABLV Asset Management for violating anti-money laundering counter-terrorism funding regulations. 

According to FMCM, ABLV Asset Management and FCMC have settled on an agreement that enforces a fine of €57,217 on ABLV Asset Management. The settlement also requires ABLV Asset Management to take measures and ensure a proper framework that will help to prevent illicit financial flow and crimes like terrorism funding and money laundering. 

FCMC, as a part of the agreement, have discovered violations of the law for Prevention of Money Laundering, Terrorism and Proliferation Financing (AML). ABLC Asset Management lacked measures that guarantee the development of an internal system for the control overseeing of the AML/CTPF and responsibly manage the money laundering terrorism and proliferation funding risks faced by the investors of the funds.

ABLV Asset Management has entered an administrative agreement to protect their fund investors and to take necessary measures for AML/CTPF compliance requirements. With this agreement, ABLV Asset Management will have to fulfill a series of legal requirements which include coming up with an action plan and get that plan approved by FCMC within a given timeframe. They are also mandated to guarantee an independent and improved due diligence of the investors of funds that are managed by ABLV Asset Management. They are also to involve an external service provider for these legal obligations. 

FCMC noted that “In deciding on the entering into the administrative agreement and applying the fine, 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 eliminating them entirely.” 

As already given, in 2018, ABLV Asset Management had delayed the issue and exchanging of the investment fund certificate. The new administrative measures under the agreement provide a requirement not to issue a new certificate of investment funds until the development of the inner control system that will ensure compliance with Money Laundering, Terrorism and Profilation Financing measures. The risks of sanctions that are associated with the new fund investors. 

The beneficial owners of the company are Olegs Fils and Nika Berne and the company has a shared capital of EUR 650,000.