Austrian Regulator Shuts Down Bank Linked to Wealthy Bulgarian Shareholder

Austrian authorities have closed Euram Bank (European American Investment Bank) following a decision made at an extraordinary shareholders' meeting, as reported by the Austrian daily Die Presse. Among its shareholders is one of Bulgaria's wealthiest women, along with offshore companies, according to Austrian agency APA, which did not disclose any names.

An investigation by the Austrian magazine Profil in 2022 revealed that one of the 12 mysterious owners of Euram Bank was Tsvetelina Borislavova. At that time, the bank first came under the scrutiny of the Austrian Financial Markets Authority (FMA). In recent media reports, two years later, no names are mentioned, but there is reference to "one of the richest Bulgarian women" still holding a 9.9% stake in the bank.

Under Austrian law, shareholders with less than 10% ownership are not subject to supervisory review, and they do not need explicit approval to participate in bank ownership. Euram Bank has 12 owners, 11 of whom hold no more than 9.9% each.

The closure wasn't voluntary. The Financial Markets Authority (FMA) set an October 18 deadline for the bank to either raise 25 million euros in capital or shut down operations. This decision follows several measures imposed by the FMA against Euram Bank. Since the start of the year, the bank has been restricted from conducting new transactions, though a final ruling from the Federal Administrative Court is still pending.

The FMA accused Euram Bank of failing to comply with anti-money laundering and counter-terrorism financing regulations and not conducting proper risk assessments, claims that the bank disputes. The FMA also criticized the bank's ownership structure, noting that nine of the twelve shareholders hold...