Swiss news outlet Finews has reported that the European Central Bank and Luxembourg’s Financial Sector Supervisory Commission (CSSF) are planning to revoke Banque Havilland’s operating licence. According to by Finews, the operations of its subsidiaries in Liechtenstein and Switzerland are partially blocked, likely due to officially mandated safeguarding measures.

Citing “reliable sources,” Finews indicated that ECB’s banking supervision body and the CSSF intend to close Banque Havilland in Luxembourg. Although Finews did not provide specific reasons for the imminent licence revocation, the outlet reported that the underlying issues are centred at the bank’s headquarters. Finews stated on Wednesday 24 July that a source familiar with the matter confirmed “the reasons lie solely in Luxembourg.”

Historical irregularities

Banque Havilland has a history of drawing regulatory attention due to repeated irregularities, noted Finews. At the end of 2018, the bank was fined €4m by the CSSF for inadequate measures against money laundering and poor governance, one of the harshest administrative fines the authority can impose. Banque Havilland has previously faced scrutiny from and , and allegedly had unusual links with Britain’s .

Finews added, “Given this historical burden, it seems likely that the now imminent license revocation is due to facts that the CSSF deemed a repeat offense.”

According to its Trade and Companies Register (RCS) , the bank, based in Kirchberg, posted €58.2m in total operating revenue and a €1.1m profit for the 2023 financial year, compared to €46.4m in total operating revenue and a €20.3m net loss for 2022. It had 132 employees in Luxembourg and 55 in Liechtenstein, Monaco and the UK.

A representative of the European Central Bank told Delano that “the ECB does not comment on individual banks,” while the CSSF said it “does not comment on specific files.”

Delano asked Banque Havilland for comment.