LPB (bank)

Last updated
AS Magnetiq Bank
Company type Joint Stock Company
Industry Financial services
FoundedSeptember 5, 2008;15 years ago (September 5, 2008)
Headquarters,
Services Banking, payment service provider, eCommerce, payment infrastructure
423,000 Euro (2023)  OOjs UI icon edit-ltr-progressive.svg
Total assets 164,095,000 Euro (2023)  OOjs UI icon edit-ltr-progressive.svg
OwnerSignet Bank AS
Number of employees
170
Website www.magnetiqbank.com

JSC "LPB Bank" (previously Latvijas Pasta Banka) is a Latvian bank. It has stated that its focus is providing e-commerce acting as a payment service provider, fintech, business finance and brokerage services. [1] [2] The bank has a large proportion of non-Latvian clients. [3]

Contents

The bank is a member of the Finance Latvia Association, which representing the Latvian financial sector on a national and international level. [4]

History

Foundation

It was founded on 5 September 2008 and changed its name to JSC "LPB Bank" on 15 December 2017. [5] Until December 2023, JSC "LPB Bank" was wholly owned by the holding company Mono Ltd. [2] On December 11, 2023, following approvals from the Bank of Latvia, the European Central Bank, and the Competition Council, Mono Ltd sold all its shares of JSC "LPB Bank" to JSC "Signet Bank". This transaction led to a change in ownership and beneficiaries of JCS "LPB Bank", with planned adjustments in management to align with Signet Bank's strategic and developmental objectives.

The bank head office building was initially intended for the needs of the “Aeroflot” central agency and was built between 1984 and 1991. [6]

Modris Ģelzis, one of the trailblazers in contemporary Latvian architecture, created each façade radically differently. initially, the dominant of the building's centerpiece was a Rubik's cube, counterbalanced by a traditional building element – a nearby wind vane. [7]

Investigations and fines

It was named in the investigation into the 2014 Moldovan bank fraud scandal, together with ABLV Bank and PrivatBank [8] It was fined 305,000 Euros for its part in this. [9] [10]

In 2018, it was fined 2.2 million Euros by Latvia's Financial and Capital Market Commission (FKTK), 10% of its turnover, for "continuous non-compliance" with anti-money laundering and counter-terrorist financing legislation. The FCMC said, amongst other issues, that "the Bank failed to give sufficient weight to the unusually large, complex, inter-related transactions that have no apparent economic or visible lawful purpose". [11]

New direction

In 2018, the bank submitted to the FCMC a new strategy of the operation foresees the focus of the provision of FinTech services, e-commerce, the banks reorientation from the CIS countries to the European Economic Area (EEA), OECD. [12]

Related Research Articles

<span class="mw-page-title-main">Valērijs Belokoņs</span> Latvian businessman

Valērijs Belokoņs or Valeri Belokon is a Latvian businessman. He is a majority shareholder and chairman of the supervisory board of Baltic International Bank; a former co-owner of Blackpool F.C. From 12 January 2010 to 4 June 2013, he served as a Trustee of The Prince's Foundation for Building Community.

Rietumu is a Latvian private commercial bank founded in 1992.

<span class="mw-page-title-main">Ūkio bankas</span>

Ūkio Bankas was a Lithuanian commercial bank based in Kaunas. More than 50% of shares are owned by Lithuanian businessman Vladimir Romanov who therefore is in the control of the bank. It was the fifth largest and oldest private bank in Lithuania.

<span class="mw-page-title-main">Krišjānis Kariņš</span> Prime Minister of Latvia from 2019 to 2023

Arturs Krišjānis Kariņš is an American-Latvian politician who served as the prime minister of Latvia from 2019 until 2023. A linguist and businessman by profession, he previously served as Latvia's minister of Economics and a Member of the European Parliament. Born in Wilmington, Delaware, United States, to parents who had left Latvia during the Soviet occupation, he was active in the American Latvian community throughout his youth.

<span class="mw-page-title-main">Pasažieru vilciens</span> Railway company based in Riga, Latvia

Pasažieru vilciens is the only passenger-carrying railway company in Latvia, operating both electric and diesel trains on various lines throughout the country. It was formed in November 2001 by bringing together two separate companies, PPU Elektrovilciens and PPU Dīzeļvilciens under one name, creating the first subsidiary of Latvian Railways. As of October 2008 JSC "Pasažieru vilciens" is an independent state-owned company. As of 2017, the company employed 1,075 people.

AS PrivatBank is a credit institution registered in Latvia as joint stock company and received its banking license on 31 July 1992.

Diena is a Latvian language national daily newspaper in Latvia, published since 23 November 1990. It is one of Latvia's largest daily periodicals and used to be considered as a paper of record.

<span class="mw-page-title-main">ABLV Bank</span> Bank in Latvia

ABLV Bank was one of the largest private banks in the Baltic States, headquartered in Riga, Latvia with representative offices abroad from 1993 to 2018.

PNB Banka was one of the oldest commercial banks in Latvia. The bank was established on 29 April 1992 and the majority of the firm was owned by Russian businessman Grigory Guselnikov.

<span class="mw-page-title-main">Citadele Banka</span> Bank based in Riga, Latvia

AS Citadele banka is a Latvian bank and financial and asset manager. The principal market of operation for the Citadele Group is the Baltic States.

<span class="mw-page-title-main">Aivars Lembergs</span> Latvian politician and oligarch

Aivars Lembergs is a Latvian politician, oligarch, and convicted money launderer who was the mayor of Ventspils from 1988 to 2021, a mandate from which he has been suspended since 2008. In February 2021, Lembergs was found guilty of charges relating to bribery and money-laundering. He received a sentence of five years in prison, confiscation of property, and a €20,000 fine.

<span class="mw-page-title-main">Parex Bank</span> Bank based in Riga, Latvia

Parex Bank was a Latvian bank founded in 1992 by Valērijs Kargins and Viktors Krasovickis as a privately owned full-service banking company in Riga, Latvia that was very dominant in currency exchange in the 1990s. It had local and international clients in both the West and Russia with close ties to the Tambovskaya Russian mafia in St Petersburg and Vladimir Putin.

<span class="mw-page-title-main">2014 Moldovan bank fraud scandal</span>

In 2014, $1 billion disappeared from three Moldovan banks: Banca de Economii, Unibank and Banca Socială. This bank fraud in Moldova was a coordinated effort involving all three banks working together to extract as much loan finance as possible from the banks without any obvious business rationale. Ilan Shor, a Moldovan businessman, "masterminded" the scam. Shor was chairman of the board at Banca de Economii up to November 28, 2014.

<span class="mw-page-title-main">Riga Shipyard</span> Company based in Riga, Latvia

Riga Shipyard is a Latvian shipyard as well as one of the largest shipyards in the Baltic region. The shipyard has 9 berths, 3 docks and 2 slipways on the banks of Daugava river channels. The yard is capable to accommodate Panamax size vessels for dry-docking and Aframax size vessels for afloat repairs.

Sun Finance Group is a Latvian financial technology company operating as an online and mobile lending marketplace. The company was founded by Toms Jurjevs and Emils Latkovskis in 2017 and is headquartered in Riga, Latvia. Sun Finance is present in several countries across Europe, Asia, and Latin America.

<span class="mw-page-title-main">Mārtiņš Kazāks</span> Latvian economist and governor

Mārtiņš Kazāks is a Latvian economist and the current governor of the central Bank of Latvia since December 2019.

BluOr Bank AS is a Latvian bank founded in 2001. The central office is located in Riga.

<span class="mw-page-title-main">Jeļena Buraja</span>

Jeļena Buraja is the Chairman of the Board of Rietumu Banka, the largest local capital bank in Latvia, and a member of the Council of the charitable foundation "Nākotnes Atbalsta fonds".

<span class="mw-page-title-main">Leonids Esterkins</span> Latvian entrepreneur (born 1954)

Leonids Esterkins is a Latvian entrepreneur, founder, and main shareholder of Rietumu Banka — Latvia's largest local capital bank, also one of the four leading banks in the country. He is a Latvian citizen.

References

  1. "JSC LPB Bank". Holdinga Kompanija Mono. n.d. Retrieved 16 July 2021.
  2. 1 2 "LPB Bank Public Financial Statement First Quarter 2021" (PDF). 2021.
  3. Mike Collier (12 March 2018). "A guide to the rest of Latvia's non-resident banks". lsm.lv .
  4. "Home". Finance Latvia. Retrieved 2023-02-10.
  5. "JSC "LPB Bank" Public quarterly financial statements" (PDF). LPB Bank. 31 December 2017.
  6. Kultūra, Delfi (2014-09-25). "'Aeroflot' filiāle Rīgā". delfi.lv (in Latvian). Retrieved 2023-02-10.
  7. "Modris Ģelzis". enciklopedija.lv. Retrieved 2023-02-10.
  8. "How a Latvian laundered billion USD changed Moldova". Re:Baltica . 1 February 2016.
  9. Mike Collier (12 March 2018). "A guide to the rest of Latvia's non-resident banks". lsm.lv .
  10. "Latvia named in billion-dollar Moldova scam investigation". lsm.lv. 11 May 2015.
  11. "FCMC applies 2.2 million euro fine to JSC LPB Bank and issues warning to Board member". The Baltic Times. 23 October 2018.
  12. "LPB Bank iesniegusi FKTK pārstrādātu bankas darbības stratēģiju". Dienas Bizness (in Latvian). Retrieved 2023-02-10.