Swedbank refuses to process €23.33 court-cost payment to Aivars Lembergs, citing sanctions

A court ruling in a dispute between journalist Kārlis Streips and Aivars Lembergs ordered the media group TV24/LA.LV to reimburse Lembergs €23.33 in legal costs. When the company tried to transfer the amount via Swedbank, the bank stopped the payment.

The bank asked for clarification, saying the money was intended for a politically exposed person who is also on the United Kingdom sanctions list. The company sent the bank a copy of the court ruling, but bank employees did not change their decision.

Lembergs told LA.LV that for more than six months he has been unable to receive payments into his only basic account. He said EU regulations give every citizen the right to receive a salary, a pension and payments ordered by court decisions. According to him, due to requirements from the Latvian government and the Bank of Latvia, he would need permission from the U.S. and UK governments to receive money. Lembergs stressed that this means foreign rules, not Latvian laws, are being applied in Latvia.

Swedbank, in its response, explained that the refusal was linked to the bank's duty to assess customer transactions and manage sanctions risk. The bank said that after the initial payment request it asked the company for more information about the transaction, which was labelled "court costs – state fee." Swedbank emphasised that it must follow not only Latvian and EU requirements, but also U.S. OFAC and UK sanctions regimes. It also cited its internal rules allowing it to refuse transactions involving sanctioned individuals or posing a risk of sanctions circumvention. The bank concluded that its handling of the payment was consistent with legal requirements and contractual terms.