Reported by: GRAHAM STACK

Latvia’s financial authorities shuttered one of the oldest banks in the country for its lax financial crime controls. The bank intended to accept a financial injection from shareholders who failed to explain the origin of their money.

Before closing it, the Financial and Capital Market Commission (FCMC) raided the headquarters of the Baltic International Bank (BiB) in Riga’s Old Town as well as the homes of bank officials, Latvian media reported.

“The bank did not have an organized internal control system, including in the area related to the prevention of financial crimes,” FCMC head Santa Purgaile told an initial press conference last week.

Investigative TV program ‘De Facto’ on Latvia’s public service broadcaster LSM reported on Sunday that the police investigation may be related to an attempt by new shareholders to inject funds into the bank.

Read full report: https://www.occrp.org/en/daily/17199-latvia-shutters-baltic-international-bank-for-not-preventing-money-laundering