RIGA - US company Kroll, which investigated a Moldovan bank fraud in which illegal money was also channeled through Latvian banks, has now been hired to check reports of Latvia’s ABLV Bank, which is currently in liquidation Ilze Znotina, head of the Latvian Office for Prevention of Laundering of Proceeds Derived from Criminal Activity (also called the Control Service), said in an interview published in the daily Diena.
“We have not been able to share our information with outsourced services providers until now, because Saeima passed amendments to the law on the prevention of money laundering and terrorism financing enabling the Control Service to provide information to any external experts for research needs only on November 1,” said Znotina.
She said that the Control Service was allowed to provide its information to outsourced services providers only starting January 1 but that Kroll was expected to get to work next week to help Latvia sort out ABLV Bank’s reports.
Znotina declined to reveal the costs of this outsourced service saying that this was classified information. The government will decide on an allocation for this purpose behind closed doors, she said but denied the price could be a seven-digit figure.
In her words, the main task of Kroll experts would be to examine ABLV Bank’s suspicious reports, which will be divided into three portions. A part of the bank’s reports will be scrutinized by Kroll, a part will be examined by the Control Service and a part will be jointly checked by Kroll and the Control Service.
The Control Service signed the contract with Kroll in November 2018, and four high-level experts from the US company who participated in the investigation of the Moldova bank fraud have already arrived in Latvia.