Share of shell companies in Latvia banks has dropped to 24% - Kucinskis

RIGA – The share of shell companies in Latvian banks has dropped from 40 percent to about 24 percent, Prime Minister Maris Kucinskis (Greens/Farmers) told the press after the Financial Sector Cooperation Platform meeting.

The prime minister said that on Wednesday the bill limiting financial operations by high-risk customers in the Latvian finance sector, mainly prohibiting Latvian registered banks to service shell companies, came into force.

Even though the legislative amendments became effective as of today, according to the prime minister, the share of shell companies in Latvian banks already has dropped from 40 percent to 24 percent. Kucinskis said that the banks were aware of the planned changes and introduced the necessary changes.

The Financial Sector Cooperation Platform today discussed the necessity for banks and the government to exchange information and communicate changes.

Finance and Capital Market Commission (FKTK) chairman Peters Putnins said that such communication between the banking sector and state institutions would help to prevent different misunderstandings.

RIGA, May 9 (LETA) – The share of shell companies in Latvian banks has dropped from 40 percent to about 24 percent, Prime Minister Maris Kucinskis (Greens/Farmers) told the press after the Financial Sector Cooperation Platform meeting.

The prime minister said that on Wednesday the bill limiting financial operations by high-risk customers in the Latvian finance sector, mainly prohibiting Latvian registered banks to service shell companies, came into force.

Even though the legislative amendments became effective as of today, according to the prime minister, the share of shell companies in Latvian banks already has dropped from 40 percent to 24 percent. Kucinskis said that the banks were aware of the planned changes and introduced the necessary changes.

The Financial Sector Cooperation Platform today discussed the necessity for banks and the government to exchange information and communicate changes.

Finance and Capital Market Commission (FKTK) chairman Peters Putnins said that such communication between the banking sector and state institutions would help to prevent different misunderstandings.