BANKING & COMPLIANCE ISSUES

Our client, a tax resident of the Ukraine and the UK, 48 years old, has contacted us in relation to the access to his companies’ funds deposited into the account with a Latvian bank. Operations on the account were restricted by the Bank. The situation was complicated by the fact that the Bank's license had been suspended by local Financial Regulator. The Bank initiated an enquiry involving law enforcement agencies and an external auditor to identify indications of illegal activities and possible money laundering.

Our experts joined the process during the active phase of the investigation, having in hand the position of local lawyers concerning the prospects of funds recovery. We took care of the communication with the audit authorities, prepared and implemented a strategy for funds recovery in coordination with the client's lawyers in several counties.

After six months after submitting to the bank documentation, supporting the activities on the account, as well as prepared comprehensive explanations on the transactions and activities, the client received the bank's decision to release the funds and ordered the transfer to his own accounts opened with Swiss and UK banks.

However, on receipt of the funds receiving banks raised questions due to "unusual" transactions and demanded further explanations. Moreover, the bank in the UK also suspended the client's access to accounts.

Banks initiated enquiries into the source of specific funds and client’s source of wealth from the moment the accounts were opened and demanded a detailed report and proof on the origin of the funds.

Our experts, in close coordination with the client and our partner lawyers, prepared a comprehensive dossier (KYC package) confirming the legitimacy of the client's funds origin, as well as providing all necessary explanations and documentation about the funds received from the Latvian bank. After 30 days the funds were released and the client was able to carry out all transactions as usual.