The Latvian government is urging banks to ban shell companies
On 20 March, the Finance Sector Development Council has agreed to ban cooperation between banks and shell companies in Latvia, which have no real economic activity.
At the beginning of April, the Cabinet of Ministers will consider relevant amendments to the law to prevent and reduce the proportion of risky transactions in the banking business. The Government will ask the Saeima to consider the draft law as a matter of urgency already in April.
All credit institutions of Latvia specializing in servicing of foreign customers have been provided with initial information on the need to ensure faster changes to the bank's business model in order to prevent and reduce the proportion of risky transactions in the banking business.
The Government, the Financial and Capital Market Commission, the Association of Latvian Commercial Banks and other industry-related institutions will continue the close cooperation to strengthen the financial sector in Latvia. If the need arises, additional solutions will be sought to address the current shortcomings in the financial sector and strengthen the long-term development of the sector.
To get a closer look at the suggestion of the Financial Sector Development Council, we invite you to watch a press conference video.