Banque Havilland Faces Loss of Key Banking Licence Amid AML Concerns

Banque Havilland, a well-known private bank based in Luxembourg, is on the brink of losing a critical banking license, as reported by multiple sources. The European Central Bank (ECB) is expected to revoke the bank's permission to operate in Luxembourg due to concerns over anti-money laundering (AML) practices.

According to Bloomberg, the bank, which manages €1.35 billion in assets and caters to a clientele of wealthy individuals, has ceased accepting new deposits. The bank is owned by the Rowland family, who have connections to the British monarchy. David Rowland, one of the UK's wealthiest individuals, has served as a financial advisor to Prince Andrew, the son of the late Queen Elizabeth.

The Financial Times reports that ECB officials have identified repeated compliance and AML failures at Banque Havilland. Although the ECB's decision regarding the license is currently in draft form and requires approval by the ECB’s board of governors, this approval is expected to be a mere formality.

The ECB has declined to comment on the matter, and Banque Havilland has not responded to requests for comment at the time of publication.

In addition to its operations in Europe, Banque Havilland has branches in Dubai, Switzerland, Liechtenstein, and Monaco, many of which operate independently from the Luxembourg unit and are not under the ECB's jurisdiction. Bloomberg has reported that the bank has entered exclusive negotiations with a rival firm to sell its Monaco business.

Banque Havilland has faced several regulatory issues in recent years. The decision to revoke its license follows the bank's failure to make necessary changes after being fined €4 million by Luxembourg’s financial supervisory authority, the Commission de Surveillance du Secteur Financier (CSSF), in 2018. The fine was imposed for inadequate AML measures and poor governance practices. Finews, the first to report on the ECB's move to withdraw the license, indicated that the decision was likely due to the CSSF identifying a “repeat offence.”

The British arm of Banque Havilland was shut down last year after the Financial Conduct Authority (FCA) imposed fines totaling £10 million against the bank. Edmund Rowland, David Rowland’s son and former CEO of the British branch, was also fined £353,000 for engaging in “manipulative trading strategies” in Qatar. Both the company and Edmund Rowland are contesting the FCA's decisions.

Moreover, several current and former employees of Banque Havilland are on trial in Monaco for various AML violations, including failing to report suspicious transactions involving significant cash amounts.

By fLEXI tEAM