In a press release published on Monday, the CSSF said that it had filed an application with the district commercial court “for the suspension of payments” by ABLV Bank Luxembourg.

The body said its decision came as a result of a European Central Bank letter from Sunday inviting it to impose a moratorium and safeguards regarding the subsidiary. On Monday, the Financial and Capital Markets Commission imposed a moratorium on parent bank, ABLV Bank, on the urging of the ECB.

“In recent days, there has been a sharp deterioration of the bank’s financial position. This follows an announcement on 13 February by the US Department of the Treasury’s Financial Crimes Enforcement Network to propose a measure naming ABLV bank an institution of primary money laundering concern pursuant to Section 311 of the USA Patriot Act,” an ECB statement published Monday read.

ABLV, which an office at 26 boulevard Royal in Luxembourg City, has been under the ECB’s supervision since November 2014. Its parent company is one of the three largest banks in Latvia.