Versobank AS continues to work in Latvia under the court decision

On July 21, 2017, the Riga Administrative Court pronounced to terminate the examination against Versobank. In accordance with the administrative agreement signed by Versobank AS and the FCMC, the case concerning Versobank AS was closed and prohibition for the provision of financial services in the territory of the Republic of Latvia was raised.
Versobank AS is entitled to deliver financial services and bring in new business in Latvia on the basis of eligible regulatory legal acts. As explained by Ivo Adamson, Chairman of the Board of Versobank AS: «Settlement of disputes with the FCMC by conclusion of an administrative agreement was a priority for us. And we are very glad that we managed to achieve this. We do not want to argue, we do not need it. Our goal is to focus on the continuous development of the Bank and on the provision of quality services in compliance with all legal regulations of the financial market. »

Let us recall, Versobank AS was founded in October 1999. Until March 2012, the controlling block of stock in the Bank belonged to Cyprus Popular Bank Public Co Ltd, and from March 2012 the principal shareholders of the bank were Ukrainian investors, namely UKRSELHOSPROM PCF LLC — part of the Ukrainian corporation Alef, which includes more than 20 companies, such as a bank, an insurance company and an asset management company. The owners of the companies which are the parts of the corporation are investors and businessmen Vadim Ermolaev and Stanislav Vilensky.

Over the years of its existence, Versobank has formed a circle of loyal clients and a team of professional employees. On September 6, 2016, the Latvian Financial and Capital Market Commission (FCMC) issued an official decree covering, among other things, termination of operations of the Versobank AS office in Riga, Latvia. For its part, Versobank AS disagreed with the interpretation of the FCMC of European legislation and filed a petition to appeal against decision of the FCMC to the Latvian Administrative Court. The FCMC and Versobank AS continued constructive discussions and concluded the administrative agreement, as a result of which the bank filed an application with a request to stop the proceedings in this case.