bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 25.03.2019 | Name days: Māra, Marita, Mārīte
LatviaLatvia

ECB: money laundering prevention requires unified European regulations

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIn order to successfully combat money laundering in Eurozone, it is necessary to introduce unified European regulations and found a joint institution that would supervise the situation, said European Central Bank Supervisory Board chairperson Danièle Nouy, commenting on this year’s money laundering scandals involving ABLV Bank in Latvia and Danske Bank in Estonia.

She said money laundering prevention is hard work, and it requires effective legislation. There is a directive in place to regulate this field in Europe. This also means there are risks for it to be adopted in 19 different ways in Eurozone. She believes money laundering prevention requires unified European regulations, not a directive.

Currently European Central Bank directly monitors Eurozone’s largest banks. However, money laundering prevention is in the hands of every separate member state’s regulatory services.

«I am convinced my colleagues do everything they can. But for countries that are relatively smaller than the rest of Eurozone and which have smaller supervisory institutions it is card to secure a sufficient number of employees with appropriate knowledge and experience to work on this matter. The situation becomes even more critical by the fact that geopolitical risks in this region – Baltic and Scandinavian regions – are not insignificant,» says Nouy.

This is why she believes it would be best to have an institution that would play a supervisory role similar to that of ECB.

«This would allow us to work on money laundering prevention and make relevant decisions from Europe’s perspective, which would be more effective. I have spoken to European legislators, and I am convinced this will happen in the future, because together with harmonized legislative regulations it will serve as an effective solution to problems observed in different countries. But when this happened, development of a new directive was already close to conclusion. This is why it was a bit too late to transform the directive into a regulation,» admits ECB Supervisory Board chairperson.

She also admits that banks used for money laundering schemes are hardtop identify, because usually they are well capitalized, have no non-profitable venture business deals, and have good liquidity. ‘If everything was assessed by machines, not people, those banks would get the best possible score. This is why it is such a complex matter for supervisory institutions,’ admits Nouy.

ECB performs a unified bank monitoring mechanism. Its main objective is ensuring security of Europe’s banking system and its sustainability, as well as ensuring financial integrity and stability in Europe.

On 12 July, ECB revoked ABLV Bank’s license. This bank was previously under ECB supervision.


Leave a reply

Week in Lithuania. MPs vote to give hope of release to life prisoners

The Lithuanian parliament adopted on Thursday, March 21, a package of amendments offering a hope of release to prisoners serving life sentences. The Seimas passed the package with 87 votes in favour and none against.

BNN summary of the week: Britain in tight spot; citizenship for all and Latvia's poor progress

BNN offers a summary of this week’s topical news in a variety of categories: Change; Progress; Rejection; Conflict; Idea; Opinion; Delay.

Crumbling buildings and the future of Riga’s slums

There are many empty buildings in Riga at the moment. However, Riga’s slums have a way to be reborn. One option is Rail Baltica, which could potentially change the situation with jobs in the city centre. Developers might have many complicated objectives ahead of them, considering that more and more people may decide to relocate to Riga’s central districts, said Riga city’s chief architect Gvido Princis in a conversation with BNN about Riga’s slums.

EC Vice-President: like other countries, Latvia has limited progress with EC recommendations

Latvia has limited progress when it comes to implementation of recommendations from the European Commission. Nevertheless, Latvia does not fall from the general EU context, when most member states have a small or limited progress with recommendations, said EC Vice-President Valdis Dombrovskis during a joint meeting with Latvian Saeima’s committees.

Comparing abortions to killing affects Estonian government talks

After figures of the Estonian Conservative People's Party compared abortion to killing of people, the party's partners in coalition talks have voiced criticism.

Latvian Olainfarm minority shareholders urged to attend shareholder meeting

Co-owners of Valerijs Maligins inheritance Nika Saveļjeva and Signe Baldere-Sildedze, as well as Annas Emīlija Maligina’s mother invite Latvian pharmaceutical company Olainfarm minority shareholders to attend an extraordinary shareholders meeting and actively propose their candidates for the council.

Social workers’ wages in Latvia to grow by average of EUR 145 a month

Latvian government has decided to allocate an additional amount of EUR 4.8 million to increase wages for state social care centres starting from 1 April 2019. This will allow increasing their wages by an average of EUR 145 a month. This is provided by the 2019 state budget that has been approved by the Latvian parliament in the first reading, as confirmed by Welfare Ministry.

Germany pushes for funding cuts to EU members violating core values

Germany's federal Foreign Minister believes the European Union should start reducing its solidary funding and introduce sanctions on member states that adopt legislation contrary to European values, for example, free press, rule of law and independent courts.

Association reports Latvia suffers the most from emerging HIV cases

In 2018, 326 new HIV infection cases were registered in Latvia, according to information from Disease Prevention and Control Centre. Inga Upmace, chairperson of Baltic HIV Association, says that even though this is less when compared to 2017, Latvia remains an unfortunate leader among Baltic States for emerging HIV infection cases.

Poll: 40% Britons have felt powerless or angry over Brexit

About 40 percent of the adult population of the United Kingdom have been feeling powerless, angry or worried by Brexit in the past 12 months, a mental health poll showed.

Riga City Council wants a large loan from Latvia’s State Treasury for bridge project

To finance the reconstruction of Krasta Street and Brasas Bridge, Riga City Council plans to take a EUR 14.23 million loan from Latvia’s State Treasury, according to documents added to the working agenda of Riga City Councils Finance and Administrative Affairs Committee.

EU postpones British withdrawal to April 12 or May 22

The United Kingdom has been given two extra weeks by the European Union to decide for the third time on its withdrawal agreement and to leave on April 12 if it is not passed or to leave on May 22 if it is passed.

Less precipitation expected in Latvia this week and more sunlight expected next week

On weekends the sky will be equally cloudy and sunny. Some rain is expected only on Saturday and the night to Sunday. On the night to Saturday, there will be clear sky and air temperature will drop to 0° C… -4° C, according to Latvian State Environment, Geology and Meteorology Centre.

Producer price level in industry in Latvia up 0.6% in February

Compared to January, the level of producer prices in Latvian industry rose by 0.6 % in February 2019. Prices of products sold on the domestic market grew by 1.2 %, but prices of exported products remained the same.

Latvian president proposes giving citizenship to all children born in Latvia

Latvia’s President Raimonds Vējonis has submitted to the Saeima a legislative draft On Ceasing Provision of Non-Citizen Status to Children. This draft suggests giving children born to non-citizen parents Latvian citizenship upon birth starting from 1 January 2020 unless parents have decided on giving their child citizenship of another country, as reported by State President’s Chancellery.

Expert: Latvia has not accomplished with reduction of inequality

In the past seven years Latvia’s government has not properly implemented the recommendations provided by the European Commission on reduction of inequality, European Anti-Poverty Network’s EAPN-Latvia board chairperson Laila Balga told LNT programme 900 seconds on Thursday, 21 March.

Ruling LFGU’s presidential hopeful Skvernelis unveils key foreign policy points

Lagging in the presidential polls behind the frontrunner Gitanas Nausėda and MP Ingrida Šimonytė, Lithuania’s prime minister Saulius Skvernelis, the presidential hopeful of the ruling Farmers and Greens Union, LFGU, is ready to move heaven and earth in attracting voters on his side.

Banks in Estonia adopt increased anti-money laundering regulations

The Estonian Banking Association has decided to task its member lenders to fullfil anti-money laundering due diligence measures in an attempt to further heal Estonian banking reputation scarred by the Danske Bank money-laundering scandal.

Penalty to be applied to people for causing trouble for whistle-blowers in Latvia

Additions to the Latvian Code of Administrative Violations provide the application of a fine of up to EUR 14,000 to a legal person for causing trouble for whistle-blowers or their family members, as reported by Latvian State Chancellery.

New Zealand bans sales of semi-automatic weapons after Christchurch shootings

Assault rifles and military-style semi-automatics have been banned in New Zealand in a government reaction to the Christchurch mosque shootings.

Latvian parties submit 15 candidate lists for European Parliament elections

Five more Latvian political parties and party associations have submitted candidate lists to the Central Election Commission for upcoming European Parliament elections. So far participating parties include the National Alliance, Latvian Association of Regions, Latvian Social Democratic Workers Party, New Conservative Party and KPV LV.

Study: 55.6% of businessmen complain about high taxes in Latvia

Looking at the amount of taxes companies pay, 55.6% of businessmen and CEOs said there are too high, 36.5% said taxes are a bit too high, whereas 7.2% said taxes are as high as they need to be, according to data from Turība University’s Business Index.

Brussels: EU to support short Brexit postponement, if London passes deal

In the Brexit saga, a no-deal withdrawal is possible again as Donald Tusk has warned EU leaders will only agree to a short delay if MPs back Theresa May’s deal in March.

Allowance for people suffering from serious disability to be increased by EUR 100 in Latvia

From 1 July the Latvian government plans to increase the allowance for children and adults who require special care and who suffer from serious health problems from childhood.

Latvian minister: we should work with convicts, not isolate them

People who are currently isolated from society in prisons should not be kept isolated – they should be allowed to re-socialize, said Latvian Justice Minister Jānis Bordāns at a press-conference about the study on former inmates’ abilities to re-socialize.

Newest comments