EU officials see money-laundering risks from high share of foreign deposits
15 Mar 2019

A high share of foreign deposits could be an indicator of money-laundering risks and should be reduced in states that fail to properly monitor them, European Union officials said, as the block grapples with a series of financial scandals at its banks.

So-called non-resident deposits were very high in countries like Latvia, Malta or Cyprus that have been most exposed to recent money-laundering allegations. They have gone down after criminal probes began, European Central Bank data show.

European states should monitor foreign deposit flows, financial services commissioner Valdis Dombrovskis said.

“If those monitoring mechanisms are not strong enough, one of the ways to deal with it is to reduce the share of non-resident deposits, so reduce the money flows,” Dombrovskis, a former prime minister of Latvia, said.

– By Francesco Guarascio, Reuters, 14 March 2019.

Link to Reuters

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