scandal to hit the baltic nation one of its biggest banks is accused of busting sanctions on north korea. latvia's top banking official illness from savage arriving at the country's anti-corruption agency rim savage seen here wearing a cap was questioned by authorities after they raided his offices and property already say he is being held for demanding a bribe of at least one hundred thousand euros the news comes a week after u.s. authorities proposed banning one of latvia's largest private banks a.b.l. the bank for alleged money laundering that he has finance ministers sought to offer reassurance. but it's not enough since they are i can assure you that a lot of finance system is stable banks don't have liquidity issues so depositors can feel completely safe. that all of them only use this only about worship of interest in order to protect the finance sector stability and reputation i think that from savage should resign from his post while the investigation is ongoing. now cops know that. the latvian prime minister has also called for him savage to step down but markets are still likely to rema

the bank for allegedly to north korea latvia's finance minister sought to offer reassurance with. i can assure you that a lot in finance system is stable banks don't have liquidity issues so depositors can feel completely safe in a sense that the bigger flow of the small movie i have ever used is going on to achieve you know i think in order to protect the finance sector stability and reputation i think that room sivits should resign from his post while the investigation is ongoing now comes not to the latvian prime minister has also called for him savage to step down but markets are still likely to remain uneasy about the state of black his banking system on monday the e.c.b. said it was stopping all a.b.l. the bank payments amid the u.s. investigation and whether in savage case isn't linked to the a.b.l. the probe it calls beyond the country's borders as a member of the e.c. peace governing body savage has access to confidential information relating to europe's most powerful financial institution and of course a financial correspondent claim about abuse and is tracking the story

the bank for allegedly to north korea latvia's finance minister sought to offer reassurance. i can assure you that the latvian finance system is stable banks don't have liquidity issues so depositors can feel completely safe in a sense that along the way the flow of the snow me privately is this going up watching you know in order to protect the finance sector stability and reputation i think that room said it should resign from his post while the investigation is ongoing but not enough not to tell the latvian prime minister has also called for him seven to step down but markets are still likely to remain uneasy about the state of latvia's banking system on monday the e.c.b. said it was stopping. bank payments amid the u.s. investigation and whether in savage case isn't linked to the a.b.l. the probe it calls beyond the country's borders as a member of the e.c. peace governing body from savage has access to confidential information relating to europe's most powerful financial institution on the story for us is our financial correspondent conor had who is in his in frankfurt h

accused it of breaching sanctions against north korea. latvia's government insisted on the stability of its financial system saying the central bank is working effectively earlier this week the country's central bank governor was released from police custody as prosecutors determine whether he solicited a bribe. the latvian finance minister earlier today said despite accusations of russian interference the situation had illustrated latvia's strong rule of law >> it may be true, since we have experienced a lot of european countries have faced the active hybrid warfares carried out during their years of elections coming, but i would also stress that the fact that it happened with the governor of the central bank and the ablv are nothing to do with the hybrid offer i think the fact that tit shows latvia is a strong strong rcounh a strong rule of law >>> coming up, president trump wades further into the u.s. gun debate suggesting the solution may be allowing teachers to bring guns into schools. [fbi agent] you're a brave man, mr. stevens. your testimo

just this man but one of the baltic nation's biggest banks is accused of busting sanctions on north korea latvia's top banking official from seven arriving at the country's anti-corruption agency rim savage seen here wearing a cap was questioned by authorities after they raided his offices and property authorities say he is being held for demanding a bribe of at least one hundred thousand euros the news comes a week after u.s. authorities proposed banning one of latvia's largest private banks a.b.l. the bank for alleged money laundering that he as finance minister sought to offer reassurance. it's not the nicest thing i can assure you that a lot finance system is stable banks don't have liquidity issues so depositors' can feel completely safe because. of the snow meet my hook is this going on to a ship of interest in order to protect the finance sector stability and reputation i think that from savage should resign from his post while the investigation is ongoing. now cops know that. the latvian prime minister has also called for him savage to step down but markets are still likely to remain an ea

only negative story about the financial sector in latvia in the past we often had reports about corruption and money laundering at latvian banks north korea this aspect is relatively new at the allegations of the past often involved russian individuals corporations and also state officials or in a broader sense people from the former soviet union well it makes me all question conrad whether or not european banking supervisors are actually doing a good job. well it's not true that nothing has happened in the past in those cases in the past many of those banks had to pay high fines but of course people here now in frankfurt in the financial center of the euro zone are discussing why we have to learn from the u.s. treasury about those allegations against. and whether the european central bank was acting too cautiously their current bills and with the analysis from frank that thailand's economy grew three point nine percent last year fueled by an increase in exports of machinery computers and cars it's the strongest growth in five years and while the tourism industry remains critically important exports now make up two thirds of the economy b

latvia we have this bank. a b l v that is said to have infringed on the sanctions against north korea it had to be supported by money from the central bank in latvia one hundred million euros and also the government in latvia says that it is suspending any new sales of new government bonds because it is of course concerned that all this might have harmed the reputation of the country and what's more of course one has to ask whether the supervision of the banking sector sector in not only latvia but the eurozone as a whole is really done effectively whether the e.c.b. really has done a good job here it's plenty going on in latvia at the moment meanwhile way you are we've also seen a dip in diner shares so what's driving that. well behind this are reports or concerns among investors that might face a comparable fate than fox fox in the united states and yes i'm talking about again use papers here in germany report that the diamond to installed software in its these little cars well software cheating software meant to cheat the authorities that control these emissions if that proves to be true and if we take into

authorities proposed banning one of latvia's largest private banks because of its allegedly next to north koreaut his finance minister sought to offer reassurance . you know if i can assure you that the latvian finance system is stable banks don't have liquidity issues so depositors can feel completely safe. and oh me privately is the only one who are saying well you know i think in order to protect the finance sector stability and reputation i think that room savage should resign from his post while the investigation is ongoing. but the news is likely to spark further jitters about the state of latvia's banking system this high profile case goes beyond the country's borders as a member of the e.c.b. he's governing body when savage has access to confidential information relating to europe's most powerful financial institution. and on the story for us is all financial correspondent con had was in who's in frankfurt where of course the e.c.b. is headquartered good to see you calling had i one of the possible repercussions in this case. good morning helen well there's no official statement coming

banks accused of being connected to north korea's ballistic missile program in the past so this isn't new but this is certainly the biggest the third largest bank in latvia that's now being accused of this ok look to deal with the european officials yeah this monday at the same time the future of lot of your central bank governor is up in the air. yes i mean this is a separate issue but when we're talking about stability it certainly plays into it saturday night overnight mr and ketches office and one of his private properties were raided and then he was detained and now this forty eight hour period under which he can be held expires today it remains to be seen whether he will be charged on these accusations we heard about of taking bribes or whether he will be set free but we'll find out later today and eve in any case he sits on the european central bank's governing board as the latvian central bank chief and this is certainly something that's going to be causing ripples here in brussels as well as in libya back to the sanctions busting story what does it mean that the u.s. has pulled a lot for your on this and annoyed europe's banking supervisor in eu

of latvia since 2001 >>> in related news, latvia's largest bank, ablv is seeking emergency funding after accusations of breaching sanctions against north korea. all payments have been frozen by the lender claiming its liquidity position has deteriorated after the investigation. i'm joined by otillia dhand via phone. for those of us who don't follow the latvian banking sector what is the back story to ablv's problems >> good morning. first of all, it appears to have little to do with each other, the two are in the same timeline but unrelated. ablv is one of latvia's nonresident banks, which is a type of bank that does business mostly out of moving money that comes from growth into the latvian bank and shifted to at location around the world. recently these banks have been trying to move into wealth management and other less controversial areas, but the fact remains that the core of the business is shifting money from point "a" to point "b" around the world it tends to be usually money originating in russia. but the latest reports suggest it may have been north korean money as well. >> the challenge from my previous reporting in latvia is a to