US designates two latvia banks as money laundering concerns

www.chinaview.cn 2005-04-22 04:28:01

WASHINGTON, April 21 (Xinhuanet) -- The US Treasury Department designated two Latvian banks on
Thursday as "primary money laundering concerns," and prohibited US financial institutions from any
transactions with the two financial institutions.

"The Treasury has judiciously and strategically utilized the power of Section 311 (of the USA
PATRIOT Act) to isolate rogue actors that present money laundering concerns and risks to the US
financial sector," Treasury Secretary John W. Snow said in a statement.

With the action taken on Thursday, US financial institutions will be prohibited from establishing,
maintaining, administering or managing any correspondent account in the United States for or on
behalf of the two banks - Multibanka and VEF Bank.

Daniel Glaser, the department's deputy assistant secretary for terrorist financing and financial
crimes, said the two Latvian banks "represent a danger to the international community because they
facilitate the placement and movement of dirty money in the global financial system."

The Treasury Department cited several reasons for designating the two banks, both headquartered in
Riga, Latvia's capital, as "primary money laundering concerns," which included confidential banking
services for non-Latvian customers, certain criminals using accounts at one of the banks to
facilitate financial fraud schemes, and lacking adequate controls and procedures to detect and
combat money laundering.

Previously, the department has identified several foreign financial institutions as "primary money
laundering concerns," including Belarus's Infobank, the Commercial Bank of Syria, Myanmar Mayflower
Bank and Asia Wealth Bank.

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