June 13 2019
Latvia is preparing to oust its main financial regulator after passing an anti-money laundering reform on Thursday following months of intense international pressure.
The new law paves the way for Latvian authorities to remove Peter Putnins from his role as chairman of the country’s main bank regulator, the Financial and Capital Market Commission. The likely ousting has sparked an extraordinary spat between the regulator and the government.
Latvia has been pressured for the past 18 months to toughen its laws ever since the US accused ABLV, its leading local bank, of “institutionalised money laundering” and its central bank governor was investigated for suspected bribery — allegations he denied.