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Latvia Introduces Beneficial Ownership Rules and Regulations

Riga, Latvia - Strengthening Anti-Money Laundering Laws

In a bid to enhance its anti-money laundering (AML) laws, the government of Latvia has introduced new regulations requiring all legal entities in the country to disclose their ultimate beneficial owners (UBOs).

New Requirements for Ultimate Beneficial Owners

As of December 1st, 2017, any type of legal entity operating in Latvia, including:

  • Limited companies
  • Joint stock companies
  • Partnerships
  • Organizations

must submit a declaration to the Register of Enterprises stating the identity of its UBO.

Definition of an Ultimate Beneficial Owner

According to the Latvian Law, a UBO is defined as an individual who owns more than 25% of shares, interests or voting rights in a company directly or indirectly, or has significant influence over the company. This can include individuals who exert control through other legal entities.

Information Required for Declarations

The declaration submitted by each legal entity must include the following information about the UBO:

  • Name and surname
  • Personal code for Latvian residents
  • Date of birth and passport details for non-residents
  • Citizenship
  • Country of residence
  • A description of how the UBO has significant control over the company, including:
    • The name, registration number, and registered office of any intermediate legal entities

Timeline for Submissions

The deadline for submitting these declarations is March 1st, 2018. From April 1st, 2018, this information will become publicly available to any third party upon request.

Increasing Transparency in Latvia’s Financial System

These new regulations aim to increase transparency and accountability in Latvia’s financial system, making it more difficult for individuals or companies to conceal their true identities behind complex ownership structures.