bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 21.11.2018 | Name days: Andis, Zeltīte
LatviaLatvia

Majority of shell companies serviced by Latvian banks are based in the UK

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe majority of clients of Latvian banks are shell companies registered in the United Kingdom, as reported by Finance and Capital Market Commission.

According to data from FCMC, 32% of shell companies serviced by Latvian banks are registered in the UK. 18.1% of shell companies are registered in British Virgin Islands, 7% – in Belize, 6.8% – in Cyprus, 6% – in Seychelles, 6.4% – in Hong Kong, 6% in Panama, and 17.2% in other countries.

At the same time, FCMC Communication Office manager Ieva Upleja mentions that aside from ABLV Bank, whose shareholders have decided to commence self-liquidation, and five foreign banks in Latvia had 17,107 shell companies among their clients in February 2018. FCMC had previously reported that the number reaches 26,081 with ABLV Bank.

«The banking sector’s self-cleaning process will actively continue even without new regulations, because it is in the banks’ own interest. The most important objective right now is avoiding risky clients and dirty money. Intense work is being performed in relation to shell companies. Every bank pays attention to their clients’ profiles and makes decisions in regards to continuing cooperation with them. This is why cannot focus solely on supervision of shell companies and their full prohibition, because it is one of the ways to reduce shady deals in Latvia’s banking sector,» says Upleja.

She adds that companies with limited liability registered in Latvia and their transaction may fall under the profile of risky clients, making them akin to shell companies. It is expected that certain corrections will be made to the portfolio of domestic clients.

On Wednesday, 21 March, Latvian Prime Minister Māris Kučinskis’ managed Finance Sector’s Development Council supported initiative on prohibiting shell companies.

Finance Minister Dana Reizniece-Ozola says that the goal behind prohibition of shell companies is making sure Latvia’s financial sector is stable, sustainable, secure and able to offer services that provide support for the national economy, not create risks. «We have agreed on a plan of actions. A total of 22 proposals submitted by the regulator, finance ministry, Association of Latvian Commercial Banks and non-government organizations, the main goal of which is reducing the proportion of risky clients in the country’s banking sector,» she said.

The minister is also confident that new measures will help sort out the financial sector.

At the same time, Pēters Putniņš, head of the Finance and Capital Market Committee, mentioned that banks have been ten days to come up with strategic plans on future operations, specifically how they intend to cover losses caused by rejection of shell companies. «We expect this process to be relatively rapid. Because of that, it is highly important for stability’s sake to give banks some time to think things over,» he said.

FCMC had previously reported that among clients of Latvian banks are 26,081 shell companies, including two based in Latvia. The proportion of shell companies in all Latvian banks is 36.57%. Their proportion in the foreign clients segment is 44.5%.

In total, Latvian banks have approximately 2.6 million clients.


Leave a reply

Old Latvian government leaves new one budget plan accepted by EC

European Commission has coordinated Latvia’s 2019 budget plan, adding that it generally fits requirements of the Stability and Growth Pact. However, the old government in Latvia is not able to push it forward. This is why it has been decided to wait for the formation of a new government in Latvia to resolve problems.

War in Yemen has lead to 85 000 children deaths from hunger, charity says

An estimated 85,000 children under the age of five have starved to death as a result of Yemen’s civil war, a report from Save the Children has found, as the charity urged an immediate ceasefire to prevent more loss of life.

Police raise charges against Jurmala mayor for possible illegal financing of UGF

In the criminal case regarding possible illegal financing of the Union of Greens and Farmers, Latvia’s Prosecutor General’s Office has officially presented charges to Jurmala Mayor Gatis Truksnis and businessman Jūlijs Krūmiņš.

Latvian ministry to search for a way to reduce antibiotics consumption

«According to antibacterial medicines consumption data, consumption of antibiotics for treatment of humans in Latvia is one of the lowest in the European Union. It is important to maintain this level or ensure its reduction. At the same time, it is also important to ensure accessibility of quality healthcare services for Latvian residents,» Healthcare Ministry reports.

Saeima continues electing heads of committees; Jurašs to be responsible for security

Election of chairpersons, deputy chairpersons and secretaries of Saeima committees continue. On 21 November Saeima deputies divided posts in ten committees. There are six more left.

Estonia ranks second in lethal drug overdoses among wealthy nations

Out of 13 well-off nations, Estonia ranks second after the U.S. in the proportion of male deaths from drug overdose, the U.S. National Cancer Institute has found, Estonian World blog wrote.

SFRS: five years after Zolitude tragedy people seems to have relaxed about security precautions

Although Zolitude Tragedy came as a lesson for many people to be more responsible with security requirements, in the last five years people have become relaxed again when it comes to safety matters, said deputy chief of State Fire and Rescue Service Kristaps Eklons in an interview to 900 seconds programme of LNT.

Five years pass since the Zolitude Tragedy in Latvia

The court investigation of Zolitude tragedy’s criminal case is progressing, according to the state prosecution. Wednesday, 21 November, marked five years since the tragedy, when the roof of a Maxima supermarket collapsed, killing 54 people and injuring several dozen.

Estonian Interior Minister Anvelt steps down

Estonian Interior Minister Andres Anvelt has announced his resignation from office as the social democrat plans to leave politics altogether.

Study: Europe and China invest the most in innovations

Compared to other territories in the world, Europe’s and China’s expenses on research and development have increased the most, with investments reaching USD 782 billion. The largest amount of money is spent on consumer industry, according to Innovation 1000 study performed by PricewaterhouseCoopers and Strategy&.

Afghanistan suicide terrorist causes tragic explosion

In Afghanistan, a large gathering of Islamic scholars has been hit by a tragic terror attack as not less than 50 people have been killed.

EU-UK future ties declaration held back by issues of fisheries, Gibraltar, trade

As the European Union and the UK are now negotiating principles of their future relationship, British Prime Minister Theresa May is taking part in talks in Brussels on Wednesday to try solve disagreements regarding Gibraltar, fisheries and trade.

Bribery accused ex-Riga City Council official detained in Egypt

Law enforcement authorities in Egypt have detained bribery accused former Riga City Council official Ārija Stabiņa, as confirmed by Panorāma programe of LTV.

Police admit November 11 Embankment is not the best place for mass events

Security-wise, 11 November Embankment is not the best place for mass events. Nevertheless, responsible authorities plan to analyse in the near future ways to improve security measures in this portion of Riga, as reported by Criminal Police Chief Artis Velšs.

LMIB: CCLI price should not increase in Latvia in the near future

The price of Compulsory Civil Liability Insurance is not expected to increase in the near future, said board member of Latvian Motor Insurers' Bureau Juris Stengrevics in an interview to 900 seconds programme of LNT.

Competition Council permits Energia Verde to change owners

Latvian Competition Council has permitted the agreement in which Estonia-based private capital investment fund Usaldusfond BaltCap Infrastructure Fund gains decisive influence over SIA Energia Verde by acquiring 70% of its shares from AS Energoeco, BNN was informed by the council.

Latvian corruption watchdog commenced five cases on crimes in healthcare in past five years

Corruption Prevention and Combating Bureau has sent five criminal cases associated with corruption violations in healthcare to the prosecutor’s office in the fast five years.

Saeima approves deputies for work in parliamentary committees

Latvia’s Saeima has approved deputies who will work in the parliament’s standing committees in the next four years. 92 deputies participated in the vote; no one voted against or abstained in the vote.

NATO appreciates Lithuania's defence spending as showing example

Lithuania's significant increase in defence spending has been praised by NATO Secretary General Jens Stoltenberg as an example this week.

Ieva Jaunzeme becomes candidate to lead Latvia’s State Revenue Service

The personnel selection process organized to pick the new head of Latvia’s State Revenue Service has concluded. Ieva Jaunzeme has been named the winner, as confirmed by State Chancellery.

Ilves urges to celebrate things uniting Latvia and Estonia on centenary

The ex-President of Estonia, Toomas Hendrik Ilves, has congratulated Latvia on the 100th anniversary of its statehood and urged to look back at the historical ups and downs experienced by Estonians and Latvians since the Middle Ages that have united the two peoples.

Opinion: government formation can be described with two words – haste and ambitions

The current government formation process in Latvia can be described with two words – haste and ambitions, says ex-prime minister Valdis Birkavs.

Russia to perform OSCE Armament Control Inspection in Latvia

Over the course from 20th to 23rd November, officers of Russian armed forces will be performing Organization for Security and Co-operation in Europe armament control inspection in Latvia, as confirmed by Defence Ministry.

Bishops in Poland issue apology for sex abuse against children by clergy

Catholic bishops in Poland have asked for forgiveness to child victims of sexual abuse committed by priests and other Church workers in the mainly Catholic nation.

Week’s beginning to be chilly in Latvia – air temperature at night to drop below 0° C

Weather in Latvia will remain cold at the beginning of the week. Some areas may also experience precipitation in the form of wet snow and snow. It will become warmer closer to the middle of the week. However, colder masses of air will enter the country again at the end of the week, as reported by State Environment, Geology and Meteorology Centre.

What would you wish Latvia for its centenary?

View Results

Loading ... Loading ...

Polls Archive



Category feed: Feed: