The scandals rocking Latvia's banking system are the latest in a series of crises for the former Soviet state.
Latvia's third-largest lender was left facing rapidly mounting problems Monday, after the U.S. Treasury accused it of money laundering and defying Western sanctions. Not only this, the head of the country's central bank was held in custody over the weekend, accused of soliciting a bribe by Riga's anti-corruption agency.
"The two issues are confluent in their timeline but appear to be unrelated," Otilia Dhand, an analyst at Teneo Intelligence, told CNBC Tuesday.
Latvian authorities also say the scandals are unconnected.
Nonetheless, the dramatic headlines came as a shock to a country which has long-advertised itself as somewhat of a financial bridge between Europe's west and east.