Latvia to Cut Shell-Company Dealings After U.S. Security Warning

  • Prime minister says most risky banking practices to disappear
  • Baltic nation under pressure to clean up financial industry
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Latvia plans to reduce its banks’ dealings with shell companies after a warning from the U.S. that it needs better controls given its NATO status and shared border with Russia.

Under pressure after the demise of its No. 3 lender amid money-laundering allegations and violations of North Korea sanctions, the Baltic country will consider clean-up measures this week. The move follows a March visit by Marshall Billingslea, Assistant Secretary for Terrorist Financing at the U.S. Treasury Department.