However bad a spiralling money laundering scandal has been to the three Baltic countries, it could get even worse. Financial regulators in Estonia and Latvia told the Financial Times they were afraid Swedish banks — which dominate both headlines on money laundering and their banking systems — could withdraw from the region, just as Danske Bank and Nordea have already done amid dirty money allegations, the Financial Times reported. “Sure, we are very worried,” said Peters Putnins, head of the Latvian regulator. “Should other banks follow the route of Danske, it would be very destabilising in all three Baltic countries.” His Estonian counterpart Kilvar Kessler said he viewed the matter from a national security perspective: “If you think that somebody in the headquarters of the large Swedish banks would think their Baltic banks are more of a liability than an asset, it’s rather uncomfortable for me. You don’t know who would replace them.” Read more
