Financial Crime World

Here is the converted article in markdown format:

Latvia Makes Progress in Combating Money Laundering and Terrorist Financing

Riga, Latvia - The Financial Action Task Force (FATF) has released an update on Latvia’s progress in addressing deficiencies identified in its previous Money Laundering and Terrorist Financing (ML/FT) report. According to the update, Latvia has made significant progress in strengthening its anti-money laundering (AML) and counter-terrorist financing (CFT) regime.

Progress Made

The update highlights that all financial supervisors in Latvia, except for the Consumer Rights Protection Agency, are now conducting risk-based supervision of financial institutions. This is a significant improvement from previous reports. Additionally, currency exchange offices have partly addressed deficiencies identified in the past by implementing a plan to draft inspection plans considering significant changes in capital companies’ turnover and negative information about their operations.

Areas for Improvement

While progress has been made, there are still some areas where improvement is needed. For example:

  • Not all supervisors of non-bank financial institutions are required to conduct regular risk assessments.
  • Some may not have sufficient resources to do so.
  • Currency exchange offices still require further improvement in addressing deficiencies.

Strengthened Laws and Regulations

Latvia has taken several measures to strengthen its AML/CFT regime, including:

  • Increasing fines for false or non-declared cash and BNI transactions.
  • Criminalizing failure to declare or falsely declaring large amounts of cash on a scale.
  • Improving the ability to request and obtain further information upon discovery of false or non-declared transactions.

Conclusion

While some deficiencies still remain, Latvia has made significant progress in bringing its AML/CFT regime up to the level of compliance with international standards. The country continues to work towards addressing remaining weaknesses and improving its overall anti-money laundering and counter-terrorist financing framework.

Key Developments

  • All financial supervisors in Latvia are now conducting risk-based supervision of financial institutions.
  • Currency exchange offices have partly addressed deficiencies identified in the past.
  • Some supervisors of non-bank financial institutions may not conduct regular risk assessments or have sufficient resources to do so.
  • Latvia has strengthened its laws and regulations related to AML/CFT, including criminalizing failure to declare or falsely declaring large amounts of cash on a scale.
  • The country’s authorities have improved their ability to request and obtain further information upon discovery of false or non-declared transactions.

Next Steps

  • Address remaining deficiencies in currency exchange offices and supervisors of non-bank financial institutions.
  • Continue to strengthen laws and regulations related to AML/CFT.
  • Improve resources and training for supervisors to ensure effective risk-based supervision.