Latvian banks have frozen €11.5 million due to sanctions

By Friday, March 11, around €11.5 million had been frozen in Latvian banks due to sanctions imposed by the European Union (EU) and the US Office of Foreign Assets Control (OFAC) against Russia, the Finance and Capital Market Commission (FKTK) said March 17.

According to report by the FKTK, two natural persons are identified in the Latvian banks who are directly subject to sanctions and 26 legal persons not directly included in the sanctions lists but the ownership or control of sanctioned persons in these legal entities have been identified.

“The amount of frozen funds will likely increase in the future, given that research is still ongoing, certain high-risk customer accounts have been suspended and new sanctions are being imposed,” said the FKTK.

Previously, the FKTK had indicated that Latvia's financial sector has implemented an approach that considers Russia to be a high-risk jurisdiction, so Russian deposits in Latvian banks have decreased significantly since 2015, representing only 1.1% of the deposits in total.

A section on the FKTK website is created that provides the current information on the EU and OFAC sanctions applied to Russia and Belarus, their application, as well as the answers to the questions received by the FKTK regarding the application of sanctions. The information is updated regularly.

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