Latvia’s AML/CFT system internationally recognised as overall effective

On Thursday, 19 February the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism - MONEYVAL published its report on the results of Latvia’s mutual evaluation.

The report highlights that Latvia achieved high or substantial levels of effectiveness in all Immediate Outcomes (IOs), except one. Overall, the findings recognize Latvia’s significant progress and its long-term commitment to fighting money laundering and terrorist and proliferation financing.

"We have eliminated high risks in the financial sector, and Latvia is a safe and reliable country for investment. This is also confirmed by Latvia's choice to be among the first countries to be assessed according to the new FATF standards. We are pleased that the government's targeted work has yielded results," says Prime Minister of the Republic of Latvia Evika Siliņa about what has been achieved.

Minister for Finance of the Republic of Latvia Arvils Ašeradens: "Following the financial sector turmoil of 2018, Latvia made a deliberate political decision to implement profound structural reforms, building a transparent, secure, and internationally compliant financial sector supervisory system."

Today, we have a regulatory and supervisory framework built on effectiveness, interinstitutional cooperation, and a risk-based approach. This is a crucial aspect of national security and economic competitiveness. A strong and reliable financial system boosts investor confidence. It helps mitigate reputational risks and strengthens Latvia’s position as a secure and attractive partner in the international financial system.

The Financial Intelligence Unit (FIU Latvia) played a central role in this process, coordinating efforts across the country and ensuring a unified approach to identifying and understanding risks. Financial crimes are no longer viewed solely as economic offences, but as threats to national stability and security and appropriate response is given.

"This evaluation sends a strong signal that Latvia is now recognised as a reliable and effective partner in the global fight against financial crime and sanctions evasion," says Head of the FIU Latvia Toms Platacis. He adds: "The real test ahead is maintaining proportionality. A mature system knows when intervention is necessary and when it is not. By applying the risk-based approach decisively while ensuring that low-risk sectors are not burdened unnecessarily, Latvia strengthens its credibility and remains fully aligned with leading international standards."

The report recognizes the FIU Latvia as a highly effective institution and a global leader in international co-operation. Supported by secure and innovative co-ordination mechanisms, the FIU plays a central role in Latvia’s AML/CFT/CPF system by producing high-quality financial intelligence, leading national risk assessments, and enabling successful money laundering investigations through continuous strategic guidance, training, and inter-agency co-operation.

As previously reported, on 13 June 2025, the joint FATF/MONEYVAL Plenary concluded with the adoption of Latvia’s 6th round mutual evaluation report. Latvia is the first country to be assessed under the new round of evaluations in the FATF Global network. Latvia’s evaluation assessed the measures implemented and the results achieved during the period from 11 November 2017 to 15 November 2024.

About the mutual evaluation

This is the leading international assessment in the field of AML/CFT/CPF, conducting ongoing peer reviews of each member to assess levels of implementation of the FATF Standards, providing an in-depth description and analysis of each country’s system for preventing criminal abuse of the financial system. Mutual evaluation of Latvia assessed the effectiveness of the country’s AML/CFT/CPF measures, and their level of compliance with the FATF Standards, at the time of an on-site visit in November 2024.

The FATF (Financial Action Task Force) is an international organisation that sets and monitors standards for the prevention of money laundering, terrorism and proliferation financing (AML/CFT/CPF).

MONEYVAL (Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism) is a committee of experts of the Council of Europe that assesses member states against FATF standards and in accordance with FATF methodology.

More information: https://fid.gov.lv/en/roles-and-responsibilities/moneyval-2

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