The European Central Bank has cancelled the licence of Latvia's thirteenth largest lender by assets under management, quoting money-laundering as its reason for doing so for the first time.

The ECB's writ runs in Latvia because it joined Euroland in 2014. The private bank, like Latvia's financial sector in general, has been struck by scandals surrounding Russian money in recent years.

I'm your private banker, I'll handle your money...

It was in 1991 that the Bank of Latvia approved the bank, then known as Riga-Bank and already two years old, as a credit institution. By mid 1993, the number of commercial banks in Latvia was in excess of 60; today, it has declined to one-third of that figure. Its propaganda states: "At the end of nineties the Russian financial crisis caused serious crashes in the banking system of Latvia. Many banks ended their existence. Only a few banks managed to enter the 21st century after this arduous period [but] TKB survived. In 2000 the strategy of the bank was realigned. Private communication with the client and a special focus on his every request was really valuable in the exclusive service development. At the end of the last century TKB started to introduce a Private Banking service. This service allowed their clients to co-operate with the bank effectively, solving their problems with the help of a single responsible person at the bank – a Private Banker."

It goes on: "Today TKB is a kind of a financial club for people aiming at success and non-stop development. Their financial solutions are "hand made" – with attention to your every wish and the ability to protect your interests as their own."

Pressure from abroad

After complaints from the Organisation for Economic Co-operation and Development last year, Latvia's parliamentarians rounded on the banking regulator in December, demanding quarterly updates and higher fines for misbehaviour. The watchdog duly fined Privatbank $2.2 million in December and restricted Trasta's operations in January as part of its 'get tough' policy. Kristaps Zakulis, the regulator's head since 2012, announced his intention to leave, reportedly at the request of the Americans. The regulator applied to a court for an order to wind Trasta up on 4th March in the event of an ECB licence cancellation. A liquidator will now be appointed.