Left Menu
Development News Edition

Latvian PM vows to rid country's banking system of money-laundering "rats"


Latvian PM vows to rid country's banking system of money-laundering "rats"
Image Credit: Pixabay

Latvian Prime Minister Krisjanis Karins pledged on Wednesday to rid the country's banking system of money-laundering "rats" in a year, as the Baltic state faces international pressure over its ability to counter financial crime. In a speech to European Union lawmakers, Karins also said the best way to address the problem across the bloc was to set up a central supervisor to monitor and tackle money laundering, replacing the patchwork of national watchdogs that have sometimes proved ineffective against cross-border crime.

EU lawmakers and the European Central Bank have repeatedly called for the creation of a new supervisor against financial crime, but many EU governments have opposed the move as they prefer leaving powers at a national level. Karins said he wanted to turn the Latvian banking system into "the cleanest" in Europe, after its reputation was tarnished by the collapse last year of ABLV, the country's largest bank, amid money-laundering allegations.

Karins said he was confident that in a year's time he could be in a position to provide tips to other Europeans on how to clean up banking systems. "But it's a little bit like fighting rats. I can make sure that I get the rats out of my house and my house will be clean, but what about my neighbours?" he told lawmakers. Baltic and Nordic countries are grappling with a huge money-laundering scandal, after allegations the Estonian branch of Danske Bank, Denmark's largest lender, handled 200 billion euros ($226 billion) in suspicious transactions of Russian money between 2007 and 2015.

Sweden's Swedbank has recently been drawn into the scandal, after it was reported that it handled some of the same payments that went through Danske.. "The criminals may have left Latvia for now but they have unfortunately, I'm convinced, not left Europe," Karins said, adding the problem concerned all European states. Latvia faces a review by international money-laundering standards watchdog Moneyval in the coming months, which some officials fear could label the country as risky, alongside the likes of Serbia and Pakistan.. ($1 = 0.8843 euros)

(With inputs from agencies.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Future of Food: Technology fostering the road to global food security

Technological innovation can help address most of the pressing issues facing the world today including food security by enhancing productivity, improving financial services, managing resources, addressing environmental concerns, etc....

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Now it’s a war, Uganda deploys army to combat locust swarms

Its for the first time after 1986, the locust swarms have attacked Uganda twice in a season. With the increasing number of countries of Africa under attack by locust swarms, the problem seems to have taken a regional paradigm. Its very diff...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Videos

Latest News

Malaysia in turmoil as Anwar denounces bid to bring down govt

Malaysian politics was in turmoil Monday after leader-in-waiting Anwar Ibrahim denounced a betrayal by coalition partners he said were trying to bring down the government, two years after it stormed to victory. Anwars Pact of Hope alliance ...

US President Donald Trump tweets in Hindi on his way to India, says eager to visit country.

US President Donald Trump tweets in Hindi on his way to India, says eager to visit country....

Bon Jovi's new album to tackle gun control, politics, love and loss

American rock band Bon Jovis new album titled Bon Jovi 2020 will focus on topics such as gun control, veterans issues and politics among others. The follow-up to 2016s This House Is Not for Sale will feature a compelling breadth and depth o...

7 houses set on fire in TMC-BJP clash in Bengal

Seven houses, alleged to be of BJP supporters, have been vandalised and set on fire inWest Bengals Jalpaiguri district, police said on Monday. Fire tenders were rushed to the spot to douse theflames, a police officer said. The incident was ...

Give Feedback