US sanctions do not apply to Latvia-registered „SMP Bank”

21.03.2014
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Press release, 21.03.2014.

US sanctions do not apply to Latvia-registered „SMP Bank” – payment card system in operation*

The joint stock company AS „SMP Bank”, registered in Latvia, is operating in Latvia’s jurisdiction; therefore the US sanctions do not apply to it. „SMP Bank” executives have confirmed to the Financial and Capital Market Commission (FCMC) that its bankcard payment system is operating and may be used as usual in Latvia.

FCMC has been closely following the local situation and developments in the world, as well as maintaining communication with „SMP Bank” management in Latvia. FCMC is evaluating the impact of developments and will act accordingly to the situation.

Of 26 credit institutions operating in Latvia, five credit institutions hold capital originated from Russia, which makes up 7.1% of total foreign capital in the Latvian banking sector. „SMP Bank” is the sole subsidiary of the Russian bank in Latvia.

Updated with latest infromation: the bank changed its legal name to “Meridian Trade Bank” on 07.05.2014, and there have been material changes in the bank’s shareholder structure since 24.04.2014. The Russian “SMP Bank” is no longer a shareholder of JSC “Meridian Trade Bank”. At the moment, none of shareholders have acquired a substantial holding (above 10%) in the bank.

*The purpose of statement is to confirm that payment cards of the bank have been accepted in Latvia following the information released about stopping to service payment cards issued by the Russian “SMP Bank”.

Further information:
Laima Auza
Head of Communications Department
Financial and Capital Market Commission
Tel.:+371  67774860, +371 26148001
laima.auza@fktk.lv

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