Latvia Strengthens Anti-Money Laundering Laws with New Beneficial Ownership Registers

In a bid to combat money laundering and terrorism financing, the Latvian government has introduced new regulations requiring companies to disclose their beneficial owners. The changes aim to increase transparency in the financial system and prevent illicit activities.

What are the Key Changes?

Defining Beneficial Owners

Companies in Latvia must now maintain accurate records of their beneficial owners, defined as individuals who own more than 25% of a company or have control over it through other means. The records will include details such as:

• Name
• Date of birth
• Nationality
• Country of residence
• Type of control

Registering Beneficial Owners

The register is compulsory for all Latvian companies, with some exemptions in place for firms that already file beneficial ownership information with the Registrar or where shares are listed on a stock exchange.

Implementation Timeline

Companies established before December 1, 2017 have until March 1, 2018 to submit their beneficial owner registers. New companies will provide this information when applying for registration from April 1, 2018 onwards. From that date, the public will be able to access these records after paying an access fee.

Aims and Objectives

The introduction of these regulations aims to:

• Increase transparency in Latvia’s financial system
• Prevent money laundering and terrorist financing
• Enhance the country’s anti-money laundering laws

By implementing these changes, Latvia takes a significant step towards preventing illicit activities and promoting a more transparent financial system.