FIU Latvia publishes updated guidelines on the assessment of control of designated public officials

Targeted financial sanctions apply not only to persons directly designated in sanctions lists, but also to legal persons, entities or bodies that are owned or controlled by designated persons. Consequently, assessing the control criterion is one of the most complex aspects of implementing targeted financial sanctions in practice, and a consistent approach to such assessments is essential for ensuring the effective implementation of sanctions and legal certainty.

Due to Latvia's geographical location and historical economic ties, persons in Latvia may encounter public authorities and state-owned enterprises of Russia and Belarus. Therefore, the purpose of the guidelines is to promote consistent sanctions implementation practices and legal certainty by explaining the FIU's approach to assessing control in situations where a designated public official may exercise it.

The second updated version has been prepared to align the guidelines with amendments to Council Regulation (EU) No 269/2014, introducing definitions of "owning a legal person, entity or body" and "controlling a legal person, entity or body" in Article 1 of the Regulation. Although the institutions of the European Union had previously clarified the criteria to be considered when assessing ownership and control for sanctions purposes, these amendments harmonise and expressly incorporate those legal concepts into Regulation (EU) No 269/2014. Consequently, the FIU's approach to assessing control has not changed in substance.

"Assessment of control of designated public officials."

Since April 2024, FIU Latvia has been the national competent authority for sanctions implementation in Latvia, working with Latvian and international partners to strengthen the effectiveness of sanctions.