Russian money for the coup in Montenegro went through Latvia?

Latvian authorities are investigating whether Russian money was channeled through its banks to interfere in the elections and politics of other countries after receiving a warning from the United States, writes Reuters.

It is not known which cases are being investigated, but a senior Latvian official told the British agency that one concerns the flow of Russian money through a Latvian bank to support the coup attempt in Montenegro.

The allegations, which highlight the country's role as a conduit for Russian money heading west, came after Latvia's third-largest bank was shut down in February after the US accused it of money laundering.

Foreign Minister Edgars Rinkevičs told Reuters that citizens of Russia and former Soviet republics, including those under US sanctions, had deposited money in Latvian banks and that some of it may have been used for political manipulation.

"There is also a connection with ... hybrid warfare, that money transferred or held in the Latvian financial system could be used to undermine ... the political systems of other countries," Rinkevičs said.

"At the moment, our police authorities are investigating some clues that have been submitted to us and are related to hybrid warfare," said the head of diplomacy, referring to campaigns to influence political events, according to Reuters.

Latvian Finance Minister Dana Reizniece Ozola confirmed that the government launched such an investigation after receiving credible information from "our strategic partners," referring to the US.

"It is a very topical issue ... for the whole of Europe, especially if it turns out that money was used to manipulate election results in several European countries," Reizniece-Ozola told Reuters.

The ministers did not provide details on which cases were being investigated, but three senior Latvian officials said one involved the flow of Russian money through a Latvian bank to support the 2016 coup attempt in Montenegro.

Reuters reminds that, while the elections were being held in Montenegro, 20 people from Serbia were arrested on suspicion of planning armed attacks against that country. Serbian authorities later said they had discovered evidence, including 125.000 euros in cash and uniforms.

Special prosecutor Milivoje Katnić accused Moscow of involvement in a conspiracy aimed, as he said, at preventing Montenegro's integration into NATO, according to the British agency. The Kremlin rejected such allegations as absurd.

"The money that went through Latvia was possibly used to finance the coup in Montenegro," said one of the Latvian officials, who wished to remain anonymous.

"It is possible that the money was paid in several parts, in amounts like $15.000, so that no one would notice".

Russia has also been accused of meddling in elections from Germany to the United States, although Moscow denies this.

Reuters sent questions to the Kremlin about whether Russia used Latvia to move funds used for political interference in Europe, whether it participated in the coup attempt in Montenegro and whether people from Russia, who are under US sanctions, had accounts in banks in Latvia.

In a comment sent to Reuters from the office of Kremlin spokesman Dmitry Peskov, it says: The answer to all questions is no.

The spokesperson of the government of Montenegro did not comment on the allegations, according to the British agency.

Banks stopped operating in the Swiss style

The latest US warning that Latvian banks may have played a role in Russia's manipulations underscores Washington's continued pressure on the Baltic states to tighten controls.

Earlier this year, US authorities accused Latvia's third-largest bank, ABLV, of money laundering and violating North Korean sanctions, leading to the bank's closure and the worst financial crisis in a decade.

Suspicions that large inflows of Russian funds could also be used for political meddling underscored the need for a change to the Swiss-style banking that dozens of Latvian banks offered to Russians and citizens of former Soviet states.

Rinkevičs said that the way of doing business in the country has also changed due to more aggressive Russian foreign policy, such as the one in Ukraine.

"Russian behavior has changed quite a bit," he told the British agency. "There is a connection between money laundering and the possibility of using dirty money to influence... the political system of our allies."

"There was a concept that Latvia could be a bridge between the West and the East," he said. "We need to say goodbye to that whole bridge concept."

Since gaining independence from Russia in 1991, more than a dozen Latvian banks have positioned themselves as a gateway to the Western market for clients in Russia and former Soviet states such as Ukraine - and have promised clients Swiss-style secrecy.

At the peak of 2015, Latvian banks had deposits of about 12 billion euros for foreign clients, according to Reuters. Bankers and officials say much of that money came from Russia.

Due to the change in the banking approach, Latvia is faced with a difficult balancing act. Washington is an important military ally of this former Soviet state with a population of two million people on the eastern edge of the European Union. On the other hand, Latvia also has close historical and trade ties with Russia.