Latvia is a country located in Northern Europe with 1.9 million residents. Latvia joined both NATO and the EU in 2004. According to The World Bank Data, the country had 17,726 GDP per capita in 2020. The biggest trade partner of Latvia is Lithuania. The country is not subject to any international sanctions.
Latvia & FATF
FATF evaluates Latvia's AML regulations regularly. According to FATF, Latvia was deemed Compliant for 7, and Largely Compliant for 33 of the 40 FATF recommendations. Therefore, Latvia is not on any FATF's countries with weak AML regulations lists. The country is taking the required steps to fight against money laundering and terrorist financing with the help of international organizations such as the EU.
History of AML in Latvia
Latvia established the Advisory Board of the FIU in 1998 to fight against money laundering and adapt to the EU faster. In addition, the organization started imposing regulations to fight against terrorist financing following the 9/11 terrorist attacks.
FIU contains four departments; Head of Data Processing Unit, IT, Transaction Analysts, Secretary.
Bribery & Corruption in Latvia
Latvian untaxed shadow economy is estimated to be 25% of the overall economy. Authorities state that the main sources of laundered money are tax evasion and organized criminal activities such as fraud. Transparency International Corruption Index gave Latvia 59 points (0 being the worst and 100 being the best.) According to global regulators, the country has strong AML laws against PEPs, but it often doesn't imply them.
Latvian AML Procedures
First step - Institutions report suspicious activities to FIU
Second step - FIU collects & analyzes information and sends the case to the prosecutor whom the case appointed.
Third step - Special Investigation Divisions conduct investigations and send the case to the prosecutor's office.
Fourth step - The prosecutor's office sends the case to the court.
Fifth step - The court reviews the cases and makes judgments.
Companies Have to Comply With AML Regulations in Latvia
- Insurance Companies
- Leasing Companies
- Factoring companies,
- Credit Management Companies
- Credit companies
- Electronic Money Institutions
- Payment Institutions
- Postal Companies
- Fund Management Companies
- Investment Companies
- Stock Brokerage Firms
- Venture Capital Firms
- Real Estate Investment Companies
What Are The Money Laundering Penalties in Latvia?
Penalties for money laundering crimes depend on various factors. These factors are; the subject's criminal background and the amount of value laundered.
AML Solutions for Latvia
Sanction Scanner provides anti-money laundering solutions that help companies meet AML requirements. Companies operating in Latvia under AML liability can quickly and easily fulfill their AML needs with the solutions of Sanction Scanner. You can contact us if you have questions.
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