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Latvia's Trasta Komercbanka loses license over money laundering allegations

Xinhua, March 4, 2016 Adjust font size:

The European Central Bank (ECB) has revoked the license of Latvia' s Trasta Komercbanka which the Latvian banking regulator suspects of involvement in money laundering schemes, local media reported.

The Latvian Financial and Capital Market Commission asked the ECB to revoke the commercial bank' s license accusing Trasta Komercbanka of serious violations. The regulator also indicated that a bailout would not be possible in this case.

The regulator's chairman Peters Putnins said on public television Thursday night that Trasta Komerbanka had systematically failed to meet supervisors' requirements, had been operating with losses and violated anti-money laundering laws.

The bank's shareholders had been unable to maintain a sufficient capital level and the bank had problems with its internal control system.

On Jan. 22, the regulator imposed restrictions on Trasta Komercbanka's operations, banning it from performing debit transactions in any currency exceeding 100,000 euros (109,580 U.S. dollars).

The restrictions were imposed after Trasta Komercbanka failed to comply with the supervisors' demands to increase its capital and to enhance its business strategy and internal controls.

In December 2015, two employees of Trasta Komercbanka bank were detained on the suspicions of laundering 1 million Russian rubles (13,698 U.S. dollars) of illegal proceeds through the Latvian bank and their offices were searched by police.

Last year, Trasta Komercbanka ranked the 13th biggest bank in Latvia by assets. Enditem