The Latvian Parliament dismissed the head of the regulator Finance because of dissatisfaction with the OECD


Moscow. January 28. The Parliament of Latvia on Thursday dismissed the President of the Commission on the market financial and capital markets (FCMC) Kristaps behind the scenes, accepting his resignation.

Zakulis headed the Ministry in January 2012. According to the law on the FCMC, its Chairman, the Seimas shall appoint for six years on the joint recommendation of the President of the Bank of Latvia and Minister of Finance.

One of the reasons Behind the resignation became negative assessment of work of the Commission by the Organization for economic cooperation and development (OECD), the entry into which Latvia is negotiating. According to published OECD report, the Commission was not interested in the disclosure of several corruption cases.

According to information of the Latvian TV channel TV3, the OECD report concerned top officials of Latvia. The problems of supervision of banks was discussed at two meetings of the Council for national security.

According to the channel, most of Latvian banks specializes in serving non-residents. The volume of deposits of non-residents is about 40% of Latvia’s GDP, the turnover of money of non-residents gives two-thirds of the total financial turnover of the banks. With 80% of deposits of non-residents came from countries of the former USSR, where high levels of corruption.

Developed in the FCMC regulations for banks were not eliminated the risks of money laundering. OECD experts noted that the Commission generally does not check foreign representative offices, banks, and check local banks are rare, increasing the risk of financial crime.

The Chairman of the Seimas Inara, Murniece, acting President of the country, TV3 has confirmed that the two biggest obstacles to Latvia’s accession to the OECD remains the fight against corruption and money laundering.

Monday, January 25, it became known that Zakulis decided to retire from the Commission and has submitted a letter of resignation. “I believe that my resignation will reduce the shadow of suspicion, rumour and doubt, fallen on the FCMC. Besides, this post for me was never an end in itself,” he said.

Then, on Monday, Prime Minister Laimdota Straujuma after a meeting of the Council for cooperation of the parties of the ruling coalition told reporters that the ongoing FCMC supervision of banks, “there’s room for improvement.”