Court rejects closed hearings request in Baltic International Bank case

Latvia’s Economic Affairs Court has rejected a defence request to hear the Baltic International Bank money-laundering case behind closed doors, LSM reported. The court on Tuesday began hearing the extensive criminal case against several officials of the insolvent bank.

Prosecutor Liene Eglāja read out the indictment, seeking criminal charges against five bank officials and the bank’s largest shareholder, Valērijs Belokoņs, over the laundering of 20 million euros.

According to the indictment, the funds were obtained through various fraud schemes and were deposited into the bank’s share capital. Eglāja said new Baltic International Bank shares were issued using the infrastructure of the European commercial company controlled by a member of the organised group. The shares were sold to people whose criminal proceedings had been separated into a separate case, and the funds received for them were deposited into a Baltic International Bank account.

When the court asked Belokoņs whether he understood the charges, he requested that they be heard in Russian. He said he did not admit guilt, arguing that the actions had been based on decisions by the Financial and Capital Market Commission, the banking regulator at the time. The defendant Jūlija Jurgeleviča also denied guilt.

Viktors Bolbats said he understood the wording of the charges but did not admit guilt. Māris Liguts said he understood the text but not its substance and denied the charges. Anda Saukāne said she did not understand what unlawful act she had committed and therefore denied guilt.

Baltic International Bank was one of Latvia’s oldest and smallest banks and specialised in serving wealthy clients. The regulator closed it in late 2022, and a search was conducted at the bank that day as part of an investigation into money laundering.