Latvia on November 4 denied accusations its embassy in Moscow has been engaged in illegal financial activities.

"There are no banks, banking operations or money transactions at the embassy. Any financial transactions would be impossible," Liga Bergmane, a spokesperson for Latvia_s foreign ministry said. Earlier in the week, Latvian Ambassador Imants Daudiss was summoned to the foreign ministry in Moscow and told about "established facts of illegal activity" at his embassy, according to a Russian foreign ministry statement. Russian tax police also seized what they described as large sums of money from people leaving the Latvian embassy last week, a report in the Moscow Times newspaper said. Latvian spokesperson Bergmane said a banking association rented space in the embassy, but that it carried out market studies and did not engage in financial transactions. While denying suggestions the embassy may have been involved in illegal activity, she said an inspector general from Latvia_s foreign ministry would go to Moscow to investigate the allegations. Latvian media have speculated that Russia has concocted the allegations-possibly in a bid to undermine Latvia_s image as it strives for European Union and NATO membership.