The Board of the Financial and Capital Market Commission (FCMC) on 22.01.2016 decided to impose restrictions on the activities of the joint stock company “TRASTA KOMERCBANKA”, forbidding it from performing debit transactions in any currency, including through online banking, ATMs and by cash, with clients in the amount that exceeds 100 000 euro per depositor.
The Bank is obliged to ensure that during the period of restrictions the clients may dispose freely their funds (transfer or withdraw cash) in the amount of up to the set limits, i.e. 100 000 euro. Thus the restrictions set by the FCMC will not affect 93% of the bank’s clients as their funds do not exceed above limit. It should be also noted that above restrictions will not apply to the funds transferred into the accounts of clients after the date of adoption of FCMC decision.
At the moment, JSC “TRASTA KOMERCBANKA” continues its daily mode of operation; it offers services and meets its obligations to the clients in compliance with the limits set by the FCMC.
The decision was adopted by the FCMC as it had scrutinized the Bank’s activities during the supervisory process, i.e. how the Bank succeeded in dealing with several key priorities (capital increasing, improving the Bank’s development strategy and internal control system). Also, it was taken into account that the FCMC had already issued warnings to the bank’s largest shareholders possessing a qualifying holding, Igors Buimisters and Ivan Fursin, regarding their failure to fulfill statutory obligation of shareholder having a qualifying holding under the Credit Institution Law.
“The Bank was given time to address the particular issues to improve its activities. The Bank has not managed to do it within a reasonable timeframe, therefore the regulator is compelled to take the next step and make use of instruments laid down in the Credit Institution Law – in this case to impose restrictions on the activities of the bank,” points out Chairman of the Financial and Capital Market Commission Kristaps Zakulis.
Restrictions on the activities of JSC AS “TRASTA KOMERCBANKA” take effect on the date of adoption of the decision and are effective until the further decision by the FCMC. Restrictions apply to the JSC “TRASTA KOMERCBANKA” branch in Cyprus as well.
Currently, the bank continues to work on the adjustment of above processes, including attracting the potential investor. In parallel the FCMC, as a Latvia’s resolution authority, will examine the possibility of applying resolution tools as required by the Single Resolution Mechanism of the Europe’s banking union.
The Bank may appeal the decision to the Administrative Regional Court, however, the appeal of the administrative act issued by the Financial and Capital Market Commission does not suspend the execution thereof.
For further information:
FCMC Communication Division
T: 67774807, 67774808, 67774860