Banks, Financial Services, Latvia, Legislation

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 19:17

Latvia's possibilities to control risks associated with non-resident deposits are low

BC, Riga, 15.06.2016.Print version
Servicing non-resident money in banks is a high-risk business, but Latvia’s possibilities of containing these risks are low, Peters Putnins, the head of the Financial and Capital Market Commission (FCMC) said in an interview with LNT commercial TV channel on June 15th, cites LETA.

The head of the banking regulator indicated that servicing non-resident money is not something bad in itself, but that it is necessary to reckon with and control the risks associated with non-resident deposits. Latvia’s possibilities to ensure such control are low, he said.

 

The comparatively high number of cases where non-resident money has been laundered through Latvian banks is an indication that the situation has to be urgently improved, Putnins said.

The FCMC head noted that money laundering is an issue in many countries, but that the number of money-laundering scandals in Latvia has been too high.

 

Putnins said that independent auditors are currently examining all the Latvian banks working with non-resident clients and that the first findings are expected in Augusts. These data will show “where our system stands internationally”, Putnins said.

 

Based on these findings, a rehabilitation plan will be worked out for each bank. If the banks ignore these plans, individual sanctions will be considered, Putnins said.

 

So far, the banks’ cooperation with the auditors has been impeccable, the head of the regulator said, voicing hope that no banks will follow in the footsteps of Trasta Komerbanka, whose license was revoked on March 3 for money-laundering-related violations.






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