The European Central Bank in its capacity as the competent banking supervision authority withdrew the licence of the Estonian bank Versobank AS on 27.03.2018. Versobank AS was active in Austria under the freedom to provide services and held customer deposits of around € 4 million in this way. Depositors at the bank are recommended to contact Versobank AS immediately regarding the repayment of their customer deposits.
What is to be taken into consideration in the event that Versobank AS is unable to pay back all customer deposits?
As Versobank AS is not a credit institution domiciled in Austria, deposits, where they qualify as eligible deposits (see below), are covered by the Estonian deposit guarantee scheme “Tagatisfond” (https://www.tf.ee/eng/ – available in Estonian, Russian and English) by law.
In the event that Versobank AS is not able to repay all of the deposits of its customers in full or in a timely manner, then a deposit guarantee pay out event occurs. In the case of a deposit guarantee pay out event like this, the Estonian deposit guarantee fund “Tagatisfond” is obliged to inform depositors within two working days, and to publish on its website, how the compensation of depositors is to be conducted.
The eligible deposits must then generally be paid out within seven working days of the occurrence of the deposit guarantee pay out event.
What can customers do in this case?
In the event of a deposit guarantee pay out event the affected depositors are recommended to consult the latest information on the Tagatisfond website, and the prepare the corresponding account documentation (e.g. the contract establishing the account and account statements).
In case anything is unclear, customers are recommended to contact the “Tagatisfond” directly ([email protected], +372 611 0730).
Information about deposit guarantee schemes can be found in the Frequently asked questions (select the category > Deposit Protection).
The reasons for the withdrawal of Versobank AS’ licence by the ECB were continuing and severe breaches of the legal requirements on the prevention of money laundering and terrorist financing by the bank.
The Estonian Guarantee Fund Act, which serves as the legal basis for the “Tagatisfond” deposit guarantee facility, is the national transposition of a Europe-wide harmonised law (Directive 2014/49/EU). The affected deposits are protected in such cases and in accordance with a minimum amount to the same extent in all Member States of the European Union.
 See the English version of the legal basis – Article 41 para. 2 of the Guarantee Fund Act – Riigi Teataja (https://www.riigiteataja.ee/en/eli/ee/511012018005/consolide)