bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 20.02.2019 | Name days: Smuidra, Vitauts, Smuidris
LatviaLatvia

Minister: it is not impossible for banks to reduce number of risky clients to 5%

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIt is not impossible for Latvian banks to reduce the number of risky clients to 5%, says Finance Minister Dana Reizniece-Ozola.

She says that Finance and Capital Market Commission (FCMC) has met with representatives of all banks working in Latvia. The regulator gave them two weeks to decide what each bank intends to do with their business and how they will perform restructuring.

«FCMC’s proposal is prohibiting so-called shell companies to naturally reduce the number of risky clients. Banks have to reduce the number of such clients to 5% in a couple of months,» said the minister.

According to Reizniece-Ozola, such a reduction will be hard to achieve for banks. Still, it is not impossible.

Information from FCMC shows that among clients of Latvian banks are 26,081 shell companies. Two of them are located in Latvia. The proportion of shell companies in all Latvian banks is 36.57%. In the foreign clients segment, shell companies’ proportion is 44.5%.

In total, Latvian banks have 2.6 million clients.

This data includes ABLV Bank, whose shareholders have decided to commence the bank’s self-liquidation.

Problems for ABLV Bank started when Financial Crimes Enforcement Network (FinCEN) of US Department of Treasury announced in the middle of February that it plans to establish sanctions against ABLV Bank for money laundering activities that had assisted with North Korea’s nuclear arms programme, as well as illegal activities in Azerbaijan, Russia and Ukraine.

The report published by FinCEN details that until 2017 the management of ABLV Bank had been using bribery to influence officials in Latvia in an attempt to avoid legal action and threats to its high-risk operations.

FinCEN also mentioned that ABLV Bank’s business practice provided financial services to clients who wanted to avoid regulator’s attention – the bank’s management and employees are equally to blame for illegal financial activities of their clients, including money laundering through shell companies.

ABLV Bank denies all accusations from FinCEN.

Latvian Commercial Banks Association has announced that it fully supports limitation of shell companies’ presence in the banking sector.


Leave a reply

  1. Uncle Sam says:

    When the party says: do it, the Komsomol replies: yes!

Risky projects that are «under watch» in Latvia: electrification, Krievu Island and Rīgas tramvajs

«Latvia’s biggest mistake getting its hands on finances to afford EU projects is that these projects are more often than not organizes specifically to use said finances, and no though is put into work on achieving results or even if results of said projects could even turn out positive for the country in the end. We see this with railway electrification, Krievu Island and Rīgas tramvajs project,» said Transport Minister Tālis Linkaits in an interview to BNN.

Putin warns U.S., Russia could target Washington with missiles

Assuming Washington could deploy short or intermediate-range nuclear weapons in Europe, Russia would target with nuclear weapons not only the countries where they are stationed, but the United States itself, Russian President Vladimir Putin has stated.

In spite of austerity measures, Rīgas satiksme’s grants could reach EUR 134 million

In spite of ongoing austerity measures, grants needed for SIA Rīgas satiksme may grow by another EUR 12 million and reach EUR 134 million, admits the company’s temporary board chairman Anrijs Matīss.

Cemex announces sale of its Baltic and Nordic assets

Cemex has made the decision to sell assets in Baltic and Nordic countries worth EUR 340 million to Germany company Schwen, as confirmed by Cemex representatives.

Swedbank refrains from commenting information about its possible involvement in money laundering

Citing confidentiality, AS Swedbank has decided to refrain from commenting on information reported by Swedish television regarding the bank’s involvement in money laundering, said the bank’s Risk Management Office in Latvia Juris Bogdanovs.

UK's May to give another try in Brussels, as EU doesn't expect breakthrough

The Prime Minister of the United Kingdom, Theresa May, returns to Brussels on Wednesday, seeking to convince European Commission chief Jean-Claude Juncker to save her Brexit deal. A representative of the British PM for May called the Brussels trip «significant» as part of a process of engagement to try to agree on the changes her government believes parliament needs to pass the deal.

Dutch soldiers in Lithuania go ice diving as part of NATO winter training

Lithuania, Dutch and Czech forces from one of NATO’s battlegroups undergo cold weather training in February, experiencing winter diving and acquiring other skills for survival in extreme weather conditions.

Brussels: Hungary lying about Juncker, Soros and mandatory migrants

Hungarian government has been criticised by European Commission officials for putting up election campaign posters with claims that EU headquarters has weakened on purpose European Union's external borders to allow in more migrants.

airBaltic to cease using Boeing 737 in autumn 2019

Latvian national airBaltic airline plans to cease using Boeing 737 in autumn 2019 or a year earlier than initially planned, as confirmed by the airline’s representative Alise Briede.

Prime Minister: Latvian teachers are hostages of municipalities

Teachers are hostages of municipalities, said Latvian Prime Minister Krišjānis Kariņš, commenting on teachers’ wages subject in an interview to LTV programme Rīta Panorāma.

Minister: Latvia needs a new housing policy

Latvia needs a new housing policy, says Economy Minister Ralfs Nemiro. He says most of Latvia’s residential houses were built during the Soviet regime. This is why a number of subjects related to the housing policy have become topical.

Levits: the state president must not serve as executor to any party

«The state president must not serve as executor to only one party,» believes Judge Egils Levits of the Court of Justice of the EU, adding that it is because of this reason it is so hard to find a president that would meet the requirements of all political parties. ‘The president needs to have sufficient metal capacity and authority to convince politicians about common state interests,» said the only presidential candidate to have had been publicly discussed by the ruling coalition in Latvia so far.

Danske Bank to quit Baltic states, Russia, after asked to leave by Estonia

Danske Bank has been asked to leave Estonia amid a large-scale money laundering scandal. Denmark's largest lender has also decided to leave the markets of Latvia, Lithuania and Russia.

Minister: Latvia is dissatisfied with reduced EU funding for agriculture

«Funding reductions for the General Agricultural Policy and Cohesion Policy are unacceptable for Latvia. In accordance with European Commission’s proposal, Latvian farmers will have reached 77% of the average direct payment level in the EU by 2026. Latvia is also dissatisfied with funding reduction for rural development,» said Latvian Foreign Affairs Minister Edgars Rinkēvičs during the 19 February meeting of the EU General Affairs Council.

UN: 200 families encircled by Islamic State fighters in Syria

In Syria, around two hundred families are currently trapped in a small area under the rule of Islamic State terrorist group, which is preventing some civilians from fleeing the territory, according to the UN.

Saeima committee: adoption of deposit system is an investment in cleaner environment

Adoption of a package deposit system is an opportunity to invest in a cleaner environment, said members of Saeima’s Economic, Agricultural, Environmental and Regional Policy Committee and Environment and Climate Sub-Committee on Tuesday, 19 February.

Lursoft: nearly 32,000 Latvian companies have disclosed true beneficiaries

31,800 Latvian companies have disclosed their true beneficiaries. Of those businesses, 28,300 had registered this information last year. Among the most frequently mentioned names of beneficiaries in Latvia are Aigars Kesenfelds, Guntis Rāvis and Ernests Bernis, according to data from Lursoft.

Lasting drought caused the lowest yield of cereals in recent years in Latvia

In 2018 harvested production of grain constituted 2.1 million tonnes, which is 635.2 thousand tonnes or 23.6 % less than a year ago and the smallest harvested production recorded over the past five years.

Criminals in Latvia planned to kidnap a bailiff and kill him after receiving ransom

According to what Latvian State Police reported during a press conference on 19 February, criminals in Latvia planned to kidnap some court bailiff, demand ransom of EUR 350,000 and kill him after receiving the ransom.

Russian warplanes intercepted four times near Baltic borders last week

Allied fighters from the NATO Air Policing Mission in the Baltics have been scrambled four times over the last week as Russian military aircraft neared the borders of the Baltic states as they moved between Kaliningrad and mainland Russia.

Estonian ex-Eurocrat convicted of rape in Brussels

A court in Belgium has found an Estonian man, who is a former high-ranking official of the European Union, guilty of rape and sentenced to four years in jail.

BTA: number of insurance claims up by more than a quarter

The number of insurance claims in Latvia at the beginning of 2019 has increased 28.4% when compared to the same month of 2018, and by 55.3% when compared to January of 2017, as reported by BTA Baltic Insurance Company representative Elīna Rasmane.

Latvia’s budget has received at least EUR 1.5 million paid in bail money in past five years

In the last five years, Latvia’s state budget has received EUR 1,535,000 in the form of bail money paid in different criminal cases, according to information from the Court Administration.

16 U.S. states oppose Trump's border wall emergency in court

16 U.S. states have opposed at a federal court the national emergency declaration over border security announced by the U.S. government as its President Donald Trump seeks to fund a border wall from military budget.

Minister: we need to reject the two basket healthcare system’s funding model

Currently the main topics in healthcare include rejecting the two basket healthcare system’s funding model and instead stick to a single basket system in which ‘doctors don’t have to take responsibility for playing with people’s lives’, said Latvian Healthcare Minister Ilze Viņķele in a phone interview to LTV programme Rīta Panorāma.