Banks, Crime, Financial Services, Latvia, Markets and Companies, Ukraine

As LETA was informed by State Police spokeswoman Ilze Jurevica, the case is still in the pre-trial investigation stage.

The State Police will not release anymore information in the interests of the investigation.

Meanwhile, PrivatBank informs that the police are investigating the events of 2015 on possible shortcoming the bank might have allowed in evaluating the activities of separate clients. The bank claims that police are not investigating direct violations committed by the bank, but insufficient client evaluation criteria, which it also claims was much softer at the time. PrivatBank points out that it is actively cooperating in the evaluation of these activities and is interested in concluding this process as soon as possible.

''Taking into account the recommendations made by the Financial Capital and Market Commission, the bank has made substantial investments this year in improving its internal control system, while at the same time has attracted new specialists and substantially improve its money laundering identification mechanisms,'' PrivatBank emphasizes.

As reported, the banking regulator in late November instructed PrivatBank to replace its board and in December also slapped a EUR 2 mln fine on the bank.

The FCMC said at the time it had decided to impose a fine of EUR 2.017 mln on PrivatBank for violating a number of regulations. The watchdog also demanded suspension of the bank's board chairman, Olexandr Trubakov, and a board member, Iveta Kerpe, and told PrivatBank to replace the entire board.

These penalties were slapped on PrivatBank as a result of the inspection carried out by the FCMC following the so-called Kroll Report that was commissioned by the Moldovan central bank to examine banking transactions between 2012 and 2014. The inspection established violations in screening of customers, documenting of information and monitoring of the customers' transactions. The bank had failed to identify several transactions as suspicious and report them to the Anti Money Laundering Service, the watchdog said.

PrivatBank closed the first nine months of this year with a profit of EUR 8.401 mln, which is by 4.3% more than in the same period last year, according to the financial report published by the bank.

According to the information from the Latvian Association of Commercial Banks, PrivatBank is the 11th largest bank in Latvia in terms of assets at the end of March 2016. PrivatBank group comprises PrivatBank, PrivatLizings leasing company, PrivatConsulting, Amber Real real estate company, and PrivatInvestment.

Ukraine's PrivatBank is the key shareholder of Latvia's PrivatBank.