Banks, Estonia, EU – Baltic States, Financial Services, Latvia
International Internet Magazine. Baltic States news & analytics
Wednesday, 24.04.2024, 12:30
More attention to be paid to Latvian banks, supervisory institutions - EBRD
She said
that the cases of ABLV Bank and
Estonian branch of Danske Bank were
alarm bells showing that the regulatory environment and strict application of
the regulations are still important for a healthy bank sector.
She said
that it is logical that more attention will now be paid to Latvian banks and
supervisory institutions, while it is not solely a negative thing because there
is a chance to demonstrate progress, improve governance, supervisory and
management standards in banks, including in prevention money laundering. There
is, of course, a matter of reputation and it will have an impact on the market,
however.
Stanczak-Wuczynska
underscored that fight against money laundering always is a challenge. "No
matter how well-prepared and comprehensive regulations are, there will always
be unfair and non-transparent companies that will try to find new and more
complicated ways to launder money. Thus, all financial services sector member
always have to be cautious and careful. We appreciate Latvia’s new legislative
initiatives, for example, to restrict cooperation of banks with shell companies
or initiatives of banks to strengthen cooperation in exchange of
information," she said.
Asked
whether the attitude to non-resident deposits should not be revised across ope
as part of non-resident deposits placed in Latvia now have flown to other EU
countries, the EBRD representative said that two aspects should be
distinguished – non-resident deposits and Anti-money laundering (AML)
vulnerability. "Non-resident deposits are a part of the banking sector,
but often they carry additional risks. In some countries the share of
non-resident deposits historically has been high, sometimes even causing
problems. Thus, the banks should strengthen their "Know Your Client"
and AML policies," she said.