Banks in Russia, Switzerland and Germany are the top destinations for hundreds of millions of euros-worth of funds that have flowed out of Latvia since March, when the nation proposed to limit banking services to certain types of shell firms, according to a senior Latvian regulator. Latvian officials introduced the new restrictions a month after the U.S. Treasury Department disclosed plans to outlaw the provision of U.S. correspondent accounts to now-defunct ABLV Bank for allowing arms dealers, corrupt officials and other criminals to move funds through accounts controlled by foreign clients and opaque legal entities. The limits take effect July...
Latvia’s financial regulator will over the next few months examine domestic banks and punish those that fail to assess shell companies, fiduciary trusts and foreign politicians as high-risk clients, a senior official told ACAMS moneylaundering.com.
The U.S. Treasury Department on Tuesday accused one of Latvia’s largest banks of having knowingly helped corrupt officials, arms traffickers and other criminals move profits through accounts held by foreign clients and anonymous shell companies.
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