Key Data

LPB Bank (previously Latvijas Pasta Banka) is a Latvian bank, founded in 2008. The bank obtained a banking license in 2008.

It was designated as a non-resident bank because most of its customers live outside the country. The bank focuses on e-commerce, corporate finance, brokerage, and fintech solutions.

LBP is a joint stock company 100% owned by import company Mono.

Their technological and financial solutions enable clients from various industries and business areas to accept payments for goods and services from anywhere in the world.

Offering

LPB offers an e-commerce service in cooperation with Visa and Mastercard, as well as the integration of Apple Pay as an additional payment method on websites or mobile applications.

Their service includes:

• Multi-currency processing
• Co-branded cards
• Branded payment page
• Recurring payments
• Anti-fraud system
• TOKEN technology

Prices vary depending on the origin of the dealer. Different rates apply to domestic traders, members of the EEA, and foreign legal entities. Domestic traders have to pay 50 EUR to open an account, while the rest have to pay 350 EUR. Over 100 currencies can be processed.

In 2014, together with ABLV Bank and PrivatBank, it played a role in the investigation of the Moldovan bank fraud scandal and was fined 305,000 euros for it.

In 2018, the bank was fined €2.2 million (10% of its turnover) by the Latvian Financial and Capital Markets Commission (FKTK) for “continuously violating anti-money laundering and counter-terrorist financing legislation.” The FKTK found, among other things, that “the bank failed to give sufficient weight to unusually large, complex, interconnected transactions that have no obvious economic or visible legitimate purpose.”

Conclusion

Due to the many rule violations and their lax AML diligence, we place LPB on our “Red Compliance” list.