The ECB and CSSF in Luxembourg did not elaborate on their reasons for acting in their statements; there have been a number of compliance issues in parts of the group. Banque Havilland shut in London last year. 

The European Central Bank has removed the bank licence of Banque Havilland SA, while Luxembourg’s Commission de Surveillance du Secteur Financier, aka CSSF, has applied to suspend payments of the bank.

Banque Havilland SA is a direct and wholly owned subsidiary of Havilland Group SA. It has two subsidiaries, Banque Havilland (Monaco) S A M and Banque Havilland (Liechtenstein) AG, which has a branch in Zurich. There is also a representative office in Dubai. Banque Havilland SA in London closed in 2023.

“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 SA said in a statement on Friday. “It is important to emphasise that [the] ECB decision is not based on issues of solvency or liquidity and Banque Havilland SA is financially stable and sound.”

There had been media speculation in July that the CSSF and ECB would act. When contacted by WealthBriefing on 24 July, the CSSF declined to comment; this publication was unable to reach the ECB. 

Neither organisation gave specific reasons for their action in their statements late last week. 

On 30 July, Banque Havilland announced the voluntary liquidation of Banque Havilland (Liechtenstein) and its Zurich Branch. 

“It is important to emphasise that this decision is not based on issues of solvency or liquidity, but on the group’s intention to discontinue its operations in Liechtenstein and Switzerland. Banque Havilland (Liechtenstein) AG is financially stable and sound, and we assure you that the liquidation process will be conducted in an orderly manner and in close cooperation with the FMA and the FINMA, ensuring compliance with all legal requirements and protecting the interests of all stakeholders involved,” the firm said. 

Some media reports had focused on regulatory actions in the UK and Luxembourg against the bank and in recent years as part of the background. For example, in January 2023, the Financial Conduct Authority issued notices to Banque Havilland, its former London CEO, Edmund Havilland, and two other former employees for their role in the 2017 plan that targeted the financial system of Qatar. The FCA fined Banque Havilland £10 million ($12.8 million). The FCA and three former employees challenged the FCA notices. (This publication was unable to locate the outcome of that specific stage of the case.

WealthBriefing is unable to confirm whether these regulatory cases are directly relevant to the Luxembourg and ECB decisions.  

Banque Havilland, which was established in 2009 by the UK's Rowland family, rose out of the ashes of the bankrupt Icelandic bank Kaupthing.