The European Central Bank has revoked Banque Havilland’s banking licence, prompting the Luxembourg Financial Sector Supervisory Commission (CSSF) to take administrative control and request a payment moratorium. This decision had been for about ten days. The CSSF confirmed this in a press release on Friday 2 August 2024. The payment moratorium aims to protect depositors, and Banque Havilland may contest the revocation.
The CSSF , “On 1 August 2024, the European Central Bank (ECB) decided to withdraw the banking licence of Banque Havilland SA, a less significant institution directly supervised by the CSSF. The decision takes effect today, following its notification to Banque Havilland SA.”
The CSSF confirmed that it lodged an application with the district commercial court on 1 August 2024 for the suspension of payments for Banque Havilland. The CSSF will act as administrator until the first-instance judgement on the application for the suspension of payments is delivered.
Banque Havilland, which originated in Luxembourg as a branch of the Icelandic bank Kaupthing in 1999, was acquired by the UK-based Rowland family in 2009 and renamed after Kaupthing's collapse during the 2008 financial crisis.
In 2018, the CSSF fined Banque Havilland €4m for inadequate measures against money laundering and poor governance, one of the harshest administrative fines the authority could impose. Headquartered in Luxembourg, Banque Havilland also operates in Liechtenstein, Switzerland, Monaco and Dubai. However, on 29 July 2024, Banque Havilland’s Liechtenstein subsidiary its banking licence and began the liquidation process. This decision also affected its Zurich branch. Banque Havilland is in advanced stages of exclusive negotiations to sell its Monaco subsidiary to One Swiss Bank. Banque Havilland employs 132 people in Luxembourg who would be by the latest decision.
A representative of the ECB told Delano on Friday that, as per the ECB’s standard policy, it does not comment or issue statements on individual institutions.
“The bank has decided to challenge the ECB Decision but will not oppose the application of the regime of suspension of payments which is intended to protect the interest of all parties involved and ensure a structured process moving forward,” Banque Havilland in a press statement. It added, “We understand there will be many questions, and we are committed to providing timely and transparent information,” without providing additional details.