3 Latvian banks fined for compliance failure relating to DPRK sanctions

Latvia’s banking regulator has fined 3 Latvian banks, Regionala Investiciju Banka, Privatbank, and Baltikums Bank, for failing to prevent their clients from using them to circumvent sanctions on DPRK.  The investigation was conducted in collaboration with the US Treasury and the FBI.

The Latvian Financial and Capital Market Commission, said in a statement that “several customers of the banks, making use of offshore companies and complicated chain transactions, transferred funds from their bank accounts to circumvent international sanctions requirements against North Korea”. Privatbank and Baltikums bank were both fined €35,575 for having weaknesses in their customer due diligence and transaction monitoring systems, Regionala was fined €570,364 and warnings were issued to its compliance team for weaknesses in its compliance systems and failing to ensure they were functioning correctly.

This entry was posted in Latvia, North Korea by Maya Lester QC. Bookmark the permalink.

About Maya Lester QC

Maya Lester QC has a wide ranging practice in public law, European law, competition law, international law, human rights & civil liberties. She has a particular expertise in sanctions. As the most recent (2016) Chambers & Partners directory put it, she "owns the world of sanctions". She spent 2011-12 in New York at Columbia Law School lecturing and writing on sanctions. She represents and advises hundreds of companies and individuals before the European and English courts and has acted in most of the leading cases, including Kadi, Tay Za, Central Bank of Iran, NITC and IRISL.

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