Estonian Association Bank sues financial regulator ({{contentCtrl.commentsTotal}})

Euros. Photo is illustrative.
Euros. Photo is illustrative. Source: (Alexander Demianchuk/TASS/Scanpix)

The Estonian Association Bank has sued the Financial Supervision Authority for its refusal to issue an activity license to the bank, daily Postimees reported.

While declining to reveal the contents of the action in detail, Ülle Mathiesen, a member of the management board of the Association Bank, said that their position and arguments have not changed. "We do not agree with the approach of the Financial Supervision Authority that the City of Tallinn as an institution is not trustworthy enough to be a member of the bank," Mathiesen had in April.

The Financial Supervision Authority announced a couple of weeks ago that they cannot issue an activity license to the bank and will halt the review procedure as it would require an in-detail background check of the bank's owners.

Suspended Tallinn mayor Edgar Savisaar and Tallinn City Council chairman Kalev Kallo are among the accused in an ongoing graft case and the Financial Supervision Authority has repeatedly requested the court case's charge sheets related to Savisaar and Kallo. As they have yet to receive these documents from the bank, it is impossible to ensure that the backgrounds of the bank's owners comply with demands or not, Kilvar Kessler, head of the Financial Supervision Authority, has previously explained.

Mathiesen said that it is impossible to present the charge sheets from the court case to the Financial Supervision Authority as the files are meant for in-house use and thus the bank has no right to share them.

As of the end of last year, the City of Tallinn had spent over €5 million on the establishment of the Association Bank and is planning on investing another €4.2 million over the next few years.

The Association Bank of Estonia was formally established in June 2015 by 122 private individuals and 32 legal persons, including the City of Tallinn, Mainor, E-Piim Tootmine, Silikaat Grupp, Saidafarm, Fund Ehitus, Endover KVB and Seven Oil, the credit and loan associations of Põlva County, Kambja and Kehtna, the Rura Development Credit Cooperative and EELK Varahaldus, the property management company of the Estonian Evangelical Lutheran Church (EELK).

Editor: Aili Vahtla

Source: BNS

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