February 19, 2018 – Financial and Capital Market Commission (FCMC) has informed the Nasdaq CSD that the Extraordinary Council meeting of FCMC in accordance with the instructions of the European Central Bank (ECB) on February 18, 2018 has decided to impose temporary payment restrictions to ABLV Bank, preventing to perform debit operations in the customers’ accounts in any currency.
According to Clause 6.10.2 of Nasdaq CSD Rulebook, the Nasdaq CSD refuses to process Transfer Orders or take any other action in relation to the securities accounts and cash accounts if, and insofar as, such Transfer Order or action would violate the applicable law, any order notified by a competent authority to the Nasdaq CSD or any agreement concluded between the Nasdaq CSD and the Participant.
According to information above and FCMC’s notification on restrictions of financial operations imposed on ABLV Bank, Nasdaq CSD has decided:
- to block all Receive securities Transfer Orders in the accounts of customers of ABLV Bank which were submitted to all 3 SSSs of the Nasdaq CSD as of February 19, 2018;
- to check Transfer Orders and based on the check:
2.1. to put on hold until further notice all DVP Transfer Orders in the accounts of customers of ABLV Bank that could lead to the transfer of cash out of ABLV Bank’s Dedicated Cash Account;
2.2. to release all DVP Transfer Orders in the accounts of customers of ABLV Bank when the customer of ABLV Bank purchases bonds, issued by ABLV Bank as issuer, from ABLV Bank itself (i.e. from own account of ABLV Bank), and as a result of respective Transfer Order no cash transfer from cash account of the customer of ABLV Bank to cash accounts of another banks is occurring;
2.3. to release all the submitted FOP Transfer Orders.