Dodgy Latvian banks now even worse

I've always been opposed to banking in Latvia but now there are even more reasons to avoid the place. As if random theft of your entire account balances wasn't enough already.

Amendments to the Law On the Prevention of Laundering of Proceeds
Derived from Criminal Activity are published today entering into force
on 24 June 2005. New regulations impose additional requirements towards
relationship between Latvian banks and their customers.

Banks must collect information, document and verify data regarding
business and personal activities of customers, origin of their funds,
organizational and ownership structure, financial position and
beneficial owners of corporate customers. In case any data is missing
on the customer’s file or if information provided by the customer is
misleading the bank must immediately terminate any relationship with the
customer in question and close his accounts along with the accounts of
all other companies belonging to the same beneficial owner.

Banks may not provide services to shell banks. Companies carrying out
money transfers on behalf of third parties are, among other structures,
classified as shell banks.

Customer information, including data of his beneficial owner, shall be
disclosed not only to a range of public authorities but also to
correspondent banks registered in the EU or OECD countries.

If the customer fails to provide the bank with the necessary data on
time and the bank decides to terminate relationship with the said
customer the accounts shall be closed. Any balance from the accounts
can only be transferred to an account of the same customer in a bank
registered in the EU or EEA country or in the bank where the funds
initially came from.
From 27 June it will not be possible to transfer such balance to any
third parties or to withdraw it in cash.

Further on, the new regulations introduce severe financial penalties to
the banks failing to comply with the new rules.

Currently our bank has temporarily stopped opening new non-resident
accounts in order to audit its existing customer base to make sure that
the information on files complies with the new requirements.

Within the next few weeks our officers will contact you to discuss
possibility of further servicing of your funds in our bank and,
possibly, to request some additional documents or information. We
should also ask you to consider what documents you can provide to comply
with the requirements described above and send them over to your account
manager.