BRUSSELS, Feb 23 (Reuters) - Latvia plans to halve the share of bank deposits held by non-residents after the United States accused one of its biggest banks of laundering money on a large scale, Prime Minister Maris Kucinskis said on Friday.
However, tighter controls would aim to cut foreign deposits gradually from their present level of 40 percent of overall deposits to 20 percent in order to avoid shocks to the economy, Kucinskis added in an interview with Reuters before an EU summit in Brussels.
U.S authorities have accused ABLV, Latvia’s third biggest bank, of engaging in large scale money laundering for Russian clients. The bank denies these allegations.
Reporting by John O'Donnell and Alastair Macdonald; Editing by Richard Balmforth