Latvia spends millions attracting investors. MiTek spent four months trying to open a bank account

Latvia has allocated €3.2 million in public funding this year for measures promoting investment and exports. Meanwhile, MiTek Industries, part of Warren Buffett’s Berkshire Hathaway group, says its new Latvian company has spent four months trying to obtain a fully operational bank account.

According to PwC Legal Latvia, which has worked with MiTek on the process, difficulties began already during company registration and concerned information about the group’s ultimate beneficial owner. Similar requirements emerged again when the company tried to open a bank account.

Latvijas Banka has now contacted MiTek, requested explanations from two commercial banks and launched mediation. The central bank also reminded banks that they can obtain documents held by Latvia’s Enterprise Register free of charge when verifying beneficial ownership information, rather than repeatedly requesting information or documents already available to the register.

Latvijas Banka says account-opening difficulties are not a systemic problem, but acknowledges that individual cases have revealed shortcomings in customer service and communication, and sometimes disproportionate requirements.

The contrast is difficult to miss: Latvia spends public money attracting foreign investment while an established international company has spent four months trying to obtain the banking infrastructure needed to expand.

And one question remains: what happens to a foreign investor facing the same problem without Warren Buffett’s name behind it?