ECB Revokes Banque Havilland’s Banking Licence Amid AML Failures

Banque Havilland, a prominent Luxembourg-based private bank, has confirmed that its banking licence has been revoked by the European Central Bank (ECB). The official confirmation of the move, which was widely signalled last week, means that the company will no longer be allowed to operate in its home market of Luxembourg and most of Europe. The firm employs just over 130 people in Luxembourg who will be affected by the latest decision.

Banque Havilland said it has “decided to challenge the ECB decision”. However, the company also said that it “will not oppose” the suspension of payments, which means that the bank will no longer be able to trade. Banque Havilland stated, “The bank aims to wind down its activities in an orderly manner.” It added that this will be done “in close cooperation” with Luxembourg’s financial supervisory authority, the Commission de Surveillance du Secteur Financier (CSSF).

“Our primary focus is now on minimising the effects of the disruption to our services and to ensure the repayment of all depositors,” Banque Havilland said. “We understand there will be many questions, and we are committed to providing timely and transparent information.”

In a brief statement, the CSSF said that the ECB “decided to withdraw the banking licence of Banque Havilland,” and added that the firm has the right to appeal. Banque Havilland did not confirm the reason that the ECB had revoked its licence, only saying that the decision was not based “on issues of solvency or liquidity,” adding that the company is “financially stable and sound.”

It has been widely reported that the ECB decision was due to repeated AML failures at Banque Havilland, including its failure to implement required AML changes after it was fined €4 million by the CSSF. The development represents a significant fall from grace for Banque Havilland, which is owned by the Rowlands, one of the UK’s wealthiest families. David Rowland, one of Britain’s richest people, has acted as the financial advisor to Prince Andrew, the son of the late Queen Elizabeth.

Headquartered in Luxembourg, Banque Havilland also operates in Liechtenstein, Switzerland, Monaco, and Dubai. However, it was confirmed earlier this week that the firm is set to close its operations in Switzerland and Liechtenstein. It is also reported to be in advanced talks to sell its operations in Monaco.

By fLEXI tEAM