Banks, EU – Baltic States, Financial Services, Good for Business, Latvia

"Some Latvian lenders' ability to process U.S. dollar transactions directly is in jeopardy as Deutsche Bank AG prepares to sever ties with them, according to people familiar with the plans of Germany's biggest bank," Bloomberg said.

A number of Latvian banks have been warned by Deutsche Bank that direct access to dollar-clearing facilities will be cut off.

According to information obtained by Bloomberg, the move won't affect Citadele Bank, Rietumu Banka and Baltic International Bank, or the Nordic lenders that operate in the Baltic nation.

Commenting this unofficial report, Deutsche Bank's spokesman Frank Hartmann said by e-mail that "in line with the bank's strategy 2020, the bank is reviewing client relationships", but declined to elaborate on the German bank's plans regarding specific Latvian banks' U.S. dollar transactions.

Bloomberg notes that the development hits a key resource for many Latvian banks, whose services focus on handling cash - mostly dollars - from clients in the ex-Soviet universe. Some lenders in Latvia have come under fire for links to money laundering from countries including Russia and Moldova.

As reported, J.P.Morgan Chase & Co. stopped offering dollar clearing in Latvia as it suspended accounts at 500 banks worldwide following regulatory fines and tighter regulations.