Opaque Funds Flowing from Latvia to Russia, Switzerland and Germany: Regulator

By Koos Couvée and Daniel Bethencourt

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...