Latvia

New Documents

FCMC of Latvia Launches New Approach to AML/CTF, Non-proliferation Financing Inspection Process

The Financial and Capital Market Commission of Latvia announced its new approach to anti-money laundering, counterterrorist financing and non-proliferation financing inspections.

June 10, 2021

Baltic Countries Condemn Belarus for Human Rights Violations, Support Sanctions

The Seimas, Lithuania’s parliament, released a declaration of support for the Belarusian people and condemnation of Belarusian security forces on behalf of the country, the Republic of Estonia, and the Republic of Latvia.

March 30, 2021

Latvia FCMC Plans 38 Onsite Inspections in 2020

March 5, 2021

FCMC of Latvia Announces SupTech Strategy

March 5, 2021

FCMC of Latvia Reduces Signet Bank AS 2020 AML Penalty

March 4, 2021

News

Weekly Roundup: Latvia Assesses Record AML Fine, Germany Failed to Probe Wirecard SAR, and More

U.K. lawmakers propose AML carveout for certain fintechs, U.S. banks reminded to vet cryptocurrency companies, and more, in the weekly roundup.

June 18, 2021

Latvia Imposes Record AML Penalty

Latvia’s Financial and Capital Markets Commission on Thursday fined Rietumu Banka €5.9 million for a string of anti-money laundering violations, several of which stem from the lender’s ties to domestic and foreign payment services providers.

June 17, 2021

Midweek Roundup: Latvia Finds No Evidence of ABLV Bribes, Turkish Lender Wants US Case Dismissal, and More

April 14, 2021

Baltic Nations Ambivalent Over EU-level AML Supervision

March 31, 2021

Midweek Roundup: FinCEN Prepares Ownership Database Rule, ABN AMRO Delayed Transactional Lookback, and More

March 24, 2021

Enforcement Actions

Latvia FCMC Fines Rietumu Banka €5.85 Million for AML/CTF Failures

The Financial and Capital Market Commission (FCMC) issued a fine against the Riga, Latvia-based financial institution for infringements of anti-money laundering (AML), counterterrorist financing (CTF) and proliferation financing rules.

June 17, 2021

Latvia FCMC Fines ABLV Asset Management, IPAS €57,217 for AML Violations

Latvia’s Financial and Capital Market Commission issued a €57,217 fine against the Riga, Latvia-based financial institution for its anti-money laundering and counterterrorist financing failures related to a weak internal controls system.

March 17, 2021

Latvia FCMC Fines AS Reģionālā Investīciju Banka €473,076 for AML Deficiencies

November 11, 2020

FCMC Fines Signet Bank AS €906,610 for AML/CTF Failures

July 16, 2020

Latvian Regulator Fines JSC Citadele Banka €647,070 for AML/CTF Deficiencies

April 30, 2020

Key Documents

Latvia Transposes Third European Money Laundering Directive into Law

December 10, 2009

Latvia Issues Enhanced CDD Requirements

August 27, 2008

Latvia Publishes List of Indicators of Unusual Transactions, Money Laundering

December 22, 2008

Latvia's Central Bank Outlines Procedures for Registration of Money Exchange Businesses

May 25, 2012

Important Facts

  • The U.S. State Department categorizes Latvia as a jurisdiction of primary concern. The main sources of laundered funds are tax evasion and organized criminal activities, including prostitution and fraud committed by Russian and Latvian groups. In contrast, proceeds from narcotics and contraband smuggling are not a major source of laundered money. The country’s geographic location and high levels of public corruption represent challenges to combating money laundering, though regulatory agencies keep close watch on financial transactions related to terrorist financing. Latvia is a regional financial center with a sizeable nonresident deposit base. Total bank deposits have increased in the past year, with nonresidential deposits accounting for almost half of total bank deposits. In May 2015, the Financial and Capital Market Commission stated that the growth of nonresident deposits from Russia has remained steady despite international sanctions imposed in the spring of 2014. There is a black market for smuggled goods, primarily cigarettes, alcohol and gasoline, though smuggling does not generate significant funds laundered through the financial system. Suspect transactions and the overall value of laundered money have remained below levels before the financial crisis.
  • KYC Covered Entities: Banks, credit institutions, life insurance companies, and intermediaries; private pension fund administrators, investment brokerage firms, and management companies; currency exchange offices, payment service providers, money transmission or remittance offices, and e-money institutions; tax advisors, external accountants, and auditors; notaries, lawyers, and other independent legal professionals; trust and company service providers; real estate agents or intermediaries; organizers of lotteries or other gaming activities; persons providing money collection services; EU-owned entities; and any high-value goods merchant, intermediary, or service provider
  • STR Covered Entities: Banks,credit institutions, life insurance companies, and intermediaries; private pension fund administrators, investment brokerage firms, and management companies; currency exchange offices, payment service providers, money transmission or remittance offices, and e-money institutions; tax advisors, external accountants, and auditors; notaries, lawyers, and other independent legal professionals; trust and company service providers; real estate agents or intermediaries; organizers of lotteries or other gaming activities; persons providing money collection services; any high-value goods merchant, intermediary, or service provider; and public institutions
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: No
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 27 (Jan. 1, 2015 – Nov. 1, 2015); Convictions: 14 (Jan. 1, 2015 – Nov. 1, 2015)
-Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 7 High : 0
Largely Compliant : 33 Substantial : 1
Partially Compliant : 0 Moderate : 8
Non-Compliant : 0 Low : 2

Latvia's technical compliance was re-rated in a Jan. 22, 2020 follow-up report

BASEL i

Rank : 97/141
Score : 4.62/10

TRANSPARENCY INTERNATIONAL i

Rank : 44/180
Score : 56/100

Tax Justice Network i

Rank : 65/133
Score : 59/100