ECB's Rimsevics Back at Central Bank Despite Bribery Probe

(Bloomberg) -- Ilmars Rimsevics, probed for bribery by Latvia's anti-corruption bureau, has returned to work at the central bank in Riga that he's headed since 2001.

“He has restrictions related to the systems of the Latvian central bank,” its spokesman, Janis Silakalns, said Friday by phone. While he won't receive a salary from Latvia, Rimsevics will be able to review documents related to his work on the European Central Bank's governing council, he said.

Rimsevics was detained for 48 hours last month by the Latvian anti-corruption bureau and his office and property were searched as part of an investigation into alleged soliciting and accepting bribes of at least 100,000 euros ($122,000). He denies the accusations and says there's a campaign against him orchestrated by a group of banks upset with his efforts to tighten rules on handling foreign deposits. He's rejected calls from Latvian government officials to step aside, at least during the investigation.

The scandal comes as the Baltic country of 2 million people is also dealing with the closure of its No. 3 lender. ABLV Banka AS was shut down last week by the ECB, which deemed it failing or about to fail after the U.S. accused it of systemic money laundering -- including violations of North Korea sanctions -- and sought to block it from the American financial system. The bank denies wrongdoing.

Travel Ban

Rimsevics is barred from leaving the country as part of his bail agreement. The last ECB meeting was attended by his deputy, Zoja Razmusa.

The governor can appeal to the anti-graft bureau to allow him to travel to Frankfurt for the next ECB meeting, or may participate by telephone, with another option being allowing his deputy Zoja Razmusa to attend on his behalf, according to Silakalns. Latvia's central bank will know who'll attend the next ECB meeting by Tuesday morning, he said.

Rimsevics can also ask employees of the central bank for help, but can't order them to do something, he said.

To contact the reporter on this story: Aaron Eglitis in Riga at aeglitis@bloomberg.net.

To contact the editors responsible for this story: Andrea Dudik at adudik@bloomberg.net, Andrew Langley, Paul Abelsky

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