bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 23.01.2017 | Name days: Strauta, Grieta
LatviaLatvia

Three Latvian banks may be involved in theft of one billion euros in Moldova

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUAt the beginning of May, 40 thousand people went out to the streets of Chișinău, Moldova, to request the resignation of the country’s prosecutor general, Corruption Investigation Service and customs management. The reason for such discontent is the theft of one billion euros from three largest banks in the country.

This money had mysteriously disappeared in November 2014. It is an enormous amount for a country with a GDP that does not exceed eight billion euros. Among clients of robbed credit institutions are private persons and state institutions. The government now tries to save the banks using budget money, as reported by Nekā personīga programme of TV3.

«Four companies had borrowed approximately eight million euros almost at the same time. Can you guess what was bought using this money? Three small apartments and non-existing goods – cosmetics, shampoos and computers. Some didn’t even have necessary documents! Our lawyer has provided all the necessary information to the customs office,» – said former Chairman of the Council of Banca de Economii Ilan Shor.

Shor is a wealthy businessman in Moldova. He owns television channels and a football club. He is also married with Russian singer Jasmin. Shor tried to avoid taking responsibility for the lost money, but it seems suspicion falls on him.

The National Bank of Moldova did not believe that the local oligarch is in no way involved in illegal deals and asked an influential international detective agency – Kroll – to investigate this case. The recently published report by Kroll has shocked residents. This 83-page report details how three banks in Moldova were intentionally brought to the state of insolvency, and that this was done by Shor. Defrauding of money began in 2012, when people associated with the oligarch took over the banks in secret. As a result of complex manipulations, nearly one billion euros disappeared from banks within a matter of days in November 2014.

«Situations when banks are emptied within a few days are not often. They are very rare. The collapse of Krajbanka in Lithuania and Latvia is one such case. It is an unprecedented case and any country would declare it an emergency,» – explains Chief of Money Laundering Prevention Service of the Prosecutor’s Office of the Republic of Latvia Viesturs Burkans.

Criminals also tried to hide traces of the crime: original documents of the deals were carried from banks allegedly to archive them. The vehicle carrying the documents had also conveniently disappeared on its way there. It was later found burned out. This vehicle was owned by Shor’s insurance company. The 28-year-old businessman was presented charges with abuse of official position. On 6 May, Shor was put under house arrest.

The leads of the theft of the century in Moldova have been traced to Latvia as well. Companies controlled by Shor transferred most of the money to offshores, which had opened their accounts in three Latvian banks – Privatbank, Aizkraukles Bank and Latvian Post Bank.

The report by Kroll shows that three Latvian banks also appear in the secret take-over of shares of banks in Moldova three years ago and the aforementioned theft in November 2014.

Accounts in Latvia were opened by companies registered in Britain and Hong Kong. Citizens of Moldova, Russia, Ukraine and Latvia were listed as beneficiaries of these companies. Banks have a duty to report suspicious transactions. If the inspection reveals that the aforementioned Latvian banks did not carry out an in-depth assessment of clients and transactions, they may be fined 10% of their profit.

«We have requested information from the Central Bank of Moldova. We have also sent requests to the aforementioned banks. Initial data has been received, and we have begun assessing the level of involvement of Latvian banks,» – as noted by Finance and Capital Market Commission.

Moldova’s Financial Intelligence Service has not yet asked colleagues in Latvia to freeze accounts in the aforementioned banks. However, Viesturs Burkans predicts investigators will likely try to recover the money in order to compensate losses to victims of this crime.

Ref: 102.109.109.5783


Leave a reply

Week in Lithuania. CIA declassifies document on Lithuania’s post-WWII guerrillas

A report about guerrilla fighting against the Soviet occupation after World War II is among hundreds of thousands of declassified documents published online by the United States Central Intelligence Agency.

People no longer believe in their own country, because they associate it with people who make decisions

The biggest threat to Latvia is the fact that society, including state officials, is afraid. People are afraid of change, afraid of voicing their thoughts (thoughts that often do not comply with the politically correct stance), afraid of being misunderstood. Fear makes it harder to develop. It limits people’s internal freedom. Such is the opinion Inga Antane, president of Baltic Association – Transport and Logistics and sworn attorney of Triniti law firm, explained in her interview to Atbalsts.

Expert: «Lithuania’s renewed National Security Strategy is a «hodgepodge»

This week, the Lithuanian Parliament has overwhelmingly approved a renewed National Security Strategy, laying out 14 major hazards and risk factors to national security.

Industry: advertisements contribute the entire economy of the European Union

Every euro invested in advertisement has seven times the influence on a country’s GDP. Every one euro brings seven euros in return to the country’s GDP, as emphasized by Latvian Advertising Association, noting that advertisement sector contributes to employment in all of the European Union.

Six deputies applied with administrative penalties in Saeima’s autumn session

According to information provided to the parliament, six deputies were applied with administrative penalties during Saeima’s autumn session.

Slower economic growth for Estonia forecast – at 2.2% - for 2017

The economic growth of Estonia in 2017 will be slower than previously expected, Swedbank economists have announced lowering their previous economic forecast for the Baltic country by 0.2% to 2.2%.

Latvian and Lithuanian authorities dismantle two criminal groups

Latvian State Revenue Service’s Finance Police has successfully apprehended two organized crime groups that caused significant damage to the state budget in 2015 and 2016 by realizing different VAT fraud schemes.

Estonia to drop special pensions, push forward sweeping pension reforms

The Estonian government has decided to drop special pensions and to push forward with plans regarding other significant changes in the pension system, including tying the retirement age to the average life expectancy.

KNAB performs inspection about Jakrins’ approval in the board of Rīgas satiksme

Corruption Prevention and Combating Bureau intends to inspect if the approval of acting head of Riga City Council’s Transport Department Emils Jakrins in the management board of Rīgas satiksme had any signs of breach of good management principles.

Chinese GDP up 6.7% in 2016

World’s second largest economy has seen a 6.7% growth in 2016, Chinese official data show, which indicate that the gross-domestic-product increase has been slower than the 6.9% seen in 2015 and the slowest since 1990.

Dozens buried in Italy’s avalanche-stricken hotel

Italy has been shaken by a number of earthquakes this week, one of which has triggered an avalanche burying a mountain hotel, where at least two people have been found dead and dozens more a searched for through rubble and snow.

Weekends to experience frost and thaw; drivers urged to be careful

Weather in Latvia will not be stable in the next couple of days – cloudy weather with some precipitation will be mixed with periods of clear sky, according to State Environmental, Geology and Meteorology Centre.

Logistics Industry Council assesses results of 16+1 summit

Experts say container cargoes have the potential to bring major contribution to the logistics sector. With that, LDz Logistics intends to continue organizing the next container train from China, as well as cooperate with partners from Belarus and China in the context of the Great Stone industrial park, as BNN was informed by Transport Ministry’s representative Ilze Greiskalna.

Parliament supports amendments to avoid expensive land-measuring actions

It will no longer be necessary to prepare land border plan for entry of land units in the Land Book. It will help save budget funds, as it will not be necessary to perform land-measuring actions, as reported by Saeima press-service.

CP supervisors concerned about Latvijas Gāze’s contract terms

The Competition Council is concerned about Latvijas Gāze’s behaviour in the process of liberalization of the country’s gas market. Economy Ministry has submitted a draft of the Gas Trade and Use Rules to the Cabinet of Ministers Committee for review.

Germany seeks clarity from Trump’s government, to boost military spending

Berlin has emphasised plans to increase defence spending after facing criticism from upcoming U.S. President Donald Trump on NATO countries not meeting their spending commitments.

Saeima re-elects Elita Krumina as State Auditor

On Thursday, 19 January, the Saeima re-elected Elita Krumina in the post of State Auditor.

Saeima supports formation of aircraft passenger data registry to combat terrorism

On Thursday, 19 January, Latvia’s Saeima approved the Aircraft Passenger Data Processing Law in the final reading. This will form the passenger data registry.

Milk retail price in Estonia reaches 55 cents per litre after to price hikes

After a long period of low milk purchase prices in Estonia, milk retail prices in the Baltic country have increased twice, reaching the point where famers receive just enough to cover milk production costs.

Ventspils Freeport carries Lembergs around with luxurious car worth EUR 156,000

In spite of a 16.44% turnover decline, Ventspils Freeport bought a lux-class Audi A8L W12 for EUR 156,000 last year. It’s only known passenger so far has been the formally suspended chairman of Ventspils City Council Aivars Lembergs, as reported by Latvijas Avīze.

Estonia concludes bilateral defence framework deal with Finland

Estonia and Finland have signed a bilateral defence cooperation framework agreement aiming for closer and more regular cooperation in the field by the neighbouring countries.

Biden: Wealthiest 1% does not pay enough in taxes

The «top 1% is not carrying their weight», outgoing U.S. vice-president, Joe Biden evaluated at the World Economic Forum, insisting the world's wealthiest that they do not pay enough in taxes.

Latvia and Japan sign convention on attraction of foreign investments

In Tokyo, Latvian Finance Minister Dana Reizniece-Ozola and Japanese Foreign Ministry’s Parliamentary Vice-Minister Motome Takisawa signed a convention between the two countries on double taxation prevention for income tax.

FM: problems with real estate tax cannot be resolved with tax rate corridor

Real estate tax benefits for housing area could be applied for each person declared living in each respective house. Each benefit can be applied to the building and land, Finance Ministry’s representative Aleksis Jarockis reported on conclusions made by the work group responsible for amendments.

Turkey’s New Year’s terrorist admits choosing nightclub randomly

The main suspect of the attack in Istanbul, which left 39 people dead during New Year’s celebrations, had selected randomly the place of attack.

When do you pay fines for speeding?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: