Financial Crime World

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Latvia Moves to Strengthen Financial Intelligence Unit, Enhance Sanctions Enforcement

Boosting Financial Intelligence Capabilities

In a move aimed at bolstering its financial intelligence capabilities and streamlining sanctions enforcement, Latvia has approved a draft law that will see the establishment of a centralized Financial Intelligence Unit (FIU) as the competent authority for the application of exemptions provided for in EU regulations and decisions on the imposition of sanctions.

Key Responsibilities

The new unit is expected to ensure uniformity and efficiency in the handling of exemptions and authorizations. The key responsibilities of the FIU will include:

  • Taking all decisions on exemptions and authorizations, unless specific issues are regulated separately by law
  • Enforcing sanctions in Latvia, including decisions on freezing assets
  • Recognizing certain individuals as sanctioned persons and issuing binding decisions on asset freezes where information indicates that sanctions have not been complied with according to legislative requirements

Support for Private Sector and Public Authorities

In addition to its new responsibilities, the FIU will serve as a key resource for:

  • The private sector seeking guidance on the implementation and enforcement of sanctions
  • Public authorities requiring assistance in enforcing sanctions
  • Organizing training sessions, developing and publishing information materials, and liaising with foreign institutions - including EU bodies - on sanctions enforcement in Latvia

Protection of Sensitive Information

The new functions of the FIU are fully legally and structurally separated from its core functions under the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing. This ensures that sensitive information obtained through the FIU’s framework is protected and used only as provided for in relevant legislation.

Next Steps

The draft law, approved by Latvia’s Cabinet of Ministers on October 24, will now be submitted to the Saeima for consideration. The move is seen as a key step towards enhancing Latvia’s financial intelligence capabilities and strengthening its position in the global fight against financial crime and terrorism financing.