Bloomberg News

Latvian Bank Regulator Asks for Probe of Bank Transfer Leak

October 18, 2012

Latvia’s bank regulator asked the country’s general prosecutor to investigate how confidential details of bank transfers from Latvijas Krajbanka AS were made public.

The details of the transfers, which took place after the lender was seized by regulators in November last year, are “confidential client information, the disclosure of which is subject to criminal liability,” the regulator said in a statement on its Website today. It asked the prosecutor to investigate on Oct. 16, it said.

Latvian regulators imposed Krajbanka’s withdrawal restriction on Nov. 17 after Lithuanian regulators placed restrictions on the lender’s parent Bankas Snoras AB. Lithuania and Snoras have filed criminal and civil suits in London against the banks’ former owners, Vladimir Antonov and Raimondas Baranauskas, for alleged fraud. Both of them deny all charges.

Details of the transfers were published this week on the Website Pietiek.com as Janis Brazovskis, the deputy head of the bank regulator, faced a parliamentary vote to reconfirm him for another term. The vote, scheduled for today, was delayed to give Brazovskis and the regulator time to explain the transfers to the public, said Janis Reirs, chairman of the parliament’s budget and finance committee, on Latvijas Radio today.

The transfers, which amounted to about 55 million lati ($103.6 million), were partly the payment of client transfers registered before the bank was taken over, the regulator said in the statement.

-- Editors: Elizabeth Konstantinova, James M. Gomez

To contact the reporter on this story: Aaron Eglitis in Riga at aeglitis@bloomberg.net

To contact the editor for this story: Balazs Penz at bpenz@bloomberg.net


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