Financial Crime World

Latvia Strengthens Anti-Money Laundering Measures

The Government of Latvia has acknowledged weaknesses in its anti-money laundering (AML) measures and has committed to strengthening them. Here are some key points about the government’s efforts:

Addressing Weaknesses in Corporate Services Regulation

  1. Publication of Statistics: The government will ensure regular publication of accurate statistics about banks’ relationships with:
    • Trust and Company Service Providers (TCSPs)
    • Electronic Money Institutions/ Payment Institutions (EMIs/PIs)

Strengthening Monitoring and Transparency

  1. Developing Licensing Requirements: Licensing requirements for TCSPs will be developed to strengthen the monitoring of corporate services in Latvia.
  2. Public Register of TCSPs: A public register of all TCSPs will be set up, making it easier to track and monitor these service providers.
  3. List of Disqualified TCSP Owners/Directors: A list of disqualified TCSP owners and directors will be published.

Improving Cooperation and Intelligence Sharing

  1. Interoperability among Corporate Registries: The government will engage with competent authorities in Estonia and Lithuania to ensure interoperability among corporate registries.
  2. Financial Intelligence Cooperation: Financial intelligence cooperation and information sharing related to EMIs/PIs across the three Baltic States will be upscaled.

Joint Cross-Border Risk Assessment

  1. A joint cross-border risk assessment or thematic study will be conducted to identify current money laundering threats posed by EMIs/PIs operating in the three countries, with a focus on targeting high-risk customers from the Former Soviet Union (FSU).

Regional Expert Groups and Mandatory Requirements

  1. Sharing Intelligence with Private EMIs/PIs: Regional Expert Groups will be established to share intelligence with the largest private EMIs/PIs operating in the three countries.
  2. Targeted Transaction and Record-Keeping Requirements: The government may consider introducing mandatory targeted transaction and record-keeping requirements on EMIs/PIs serving legal entities owned by high-risk customers.

These efforts are part of a broader initiative to strengthen AML measures in Latvia and address the risks associated with shell companies, correspondent banking relationships, and money laundering.