MILAN Oct 5 The Bank of Italy said on Wednesday
it had ordered Latvian lender AS PrivatBank to shut down its
Italian branch by the end of the year and had forbidden it from
starting new operations in the country.
Italy's central bank announced in August it was starting
proceedings to shut down AS PrivatBank's local arm after finding
breaches of money-laundering regulations following inspections
carried out between March 16 and April 6.
The Bank of Italy said AS PrivatBank would not be allowed to
carry out any further operations in the country beyond letting
clients withdraw savings or transfer them to other banks.
In a statement on its webpage, PrivatBank said the new Board
of AS PrivatBank had decided to close down the Italian branch
after an "assessment of economic activities of the bank's branch
It said it had decided on the suspension of the branch on
September 19 and had notified the Bank of Italy.
In a separate statement also on Wednesday the bank said AS
PrivatBank would strengthen its fight against money-laundering.
(Reporting by Valentina Za and Stephen Jewkes; Editing by