2/22/2018

BANKING/FOREIGN POLICY/NORTH KOREA/TREASURY: “A Latvian bank threatened with U.S. sanctions for allegedly conducting a global money laundering scheme, including for companies connected to North Korea’s missile program, is seeking more than a half billion dollars in government bailout money in an effort to stay afloat.
The accusations against ABLV Bank by the U.S. Treasury Department have ignited one of Europe’s biggest money laundering scandal in years and shined a spotlight on Washington’s efforts to go after Eastern European banks it says have ties to Russian money laundering. The case has also sparked criticism of the European Central Bank, which has supervised the largest banks in the eurozone since 2014. The ECB defended its oversight on Thursday [2-22-18], saying it isn’t granted the investigative powers to uncover illegal activities.
ABLV says it isn’t guilty of money laundering, but conceded at a news conference that it suffered compliance issues big enough to merit firing and disciplinary actions in the past. The bank is requesting up to €480 million ($590 million) from the Latvian central bank, which uses the euro and is a member of the ECB, to survive proposed U.S. sanctions, it said…
The country’s banking regulator said it was examining the request. The central bank didn’t comment.”

-Drew Hinshaw, “Latvian Bank Facing U.S. Sanctions Threat Wants Government Bailout,” The Wall Street Journal online, Feb. 22, 2018 09:19am