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, IPAS 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, IPAS and to comply with the AML/CTPF regulatory requirements, with entering into the administrative agreement ABLV Asset Management, IPAS 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, IPAS, involving an independent external service provider. Besides, given that ABLV Asset Management, IPAS had suspended the issue and redemption of investment certificates of investment funds managed by it on 19.02.2018, 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, IPAS 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.
Head of FCMC’s Communications and Financial Literacy Division
Phone: +371 67774808; +371 67774807