2024-09-05
FIU Management meeting with President of Latvia E. Rinkēvičs
21.01.2020 Finanšu izlūkošanas dienests
Latvia’s regulatory framework for anti-money laundering and counter-terrorism and counter-proliferation financing (AML/CTF/CPF) largely complies with the international standards set by the Financial Action Task Force (FATF), as acknowledged by the report of the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (Moneyval). Moneyval experts’ assessment and Latvia’s performance is considered an important first step towards Latvia’s non-inclusion on the so-called ‘grey list’.
Prime Minister Arturs Krišjānis Kariņš stresses: “Moneyval experts’ assessment strengthens our conviction that Latvia might not be included on the so-called ‘grey list’. While waiting for the assessment of our performance, including the most important assessment of the effectiveness of the system, which remains to be decided by FATF experts, the work on implementing the reforms underway should continue. The ‘overhaul’ of the supervision of the financial sector has been a priority for my government since day one, and a huge amount of work has been done over the year to fine-tune this area. Thank you to everyone who worked hard and tirelessly to do this. Let’s keep working!”.
Head of the Financial Intelligence Unit (FIU) Ilze Znotiņa as the head of the Latvian delegation to Moneyval states: “Moneyval experts’ assessment provided an opportunity for Latvia to implement intensively and in a short period of time radical, but at the same time very necessary changes, thus demonstrating our ability to work as a team. All the changes that have been made to date are firmly anchored in the regulatory framework and are considered to be lasting. But we must not stop; we must continue to work for a safe, well-arranged and prosperous country.”
In July 2018, the Fifth Round Mutual Evaluation Report (MER) on Latvia was adopted at the 56th Plenary Session of Moneyval. The MER presented a summary of AML/CTF/CPF measures, assessing the current situation in Latvia from 30 October to 10 November 2017. Since the adoption of the MER, Latvia has demonstrated a strong and sustained political, supervisory and institutional commitment to fight financial crime.
Initially, the Latvian political commitment was demonstrated by the adoption of the Action Plan in October 2018. The plan provided a solid basis for developing a comprehensive, coordinated and targeted approach to address the risks identified by Moneyval experts.
Commitment, coordination and cooperation of political and institutional representatives involved in the reform implementation resulted in substantial changes in terms of aligning Latvia’s regulatory framework with the international standards — 40 recommendations of the Financial Action Task Force (FATF). This has been achieved by adopting new or amending existing legislation, developing recommendations, explanations, guidelines and ML/TF risk assessments. The following are some of the main amendments made:
Regarding the above-mentioned actions, Latvia on 30 August 2019 submitted to the Moneyval committee of experts a progress report on the progress achieved to improve the system of AML/CFT. Following Latvia’s report, Moneyval experts re-evaluated Latvia’s compliance with all 11 recommendations where deficiencies were previously identified. Currently, in all 11 recommendations Latvia’s rating has been raised, and compliance with the FATF standards is assessed as ‘largely compliant’ and ‘compliant’. Thus, current Latvia’s regulatory framework has been assessed as generally compliant with FATF standards — with all 40 recommendations. What has been achieved is considered an important first step towards Latvia’s non-inclusion in the so-called ‘grey list’.
Latvia is left in Moneyval’s enhanced follow-up process, which means that according to Moneyval’s internal rules, Latvia will have to report regularly on the remaining deficiencies, but progress will not be re-evaluated as compliance with the FATF international standards is at least ‘largely compliant’.
Latvia has demonstrated its commitment, not only focusing on the regulatory framework, but also its effective application, which is evaluated in a separate process — Latvia’s effectiveness or application of the regulatory framework in the field of AML/CFT will be evaluated by FATF, and the final decision will be taken at the end of February.
Full Moneyval’s progress report is available here.
2024-09-05
FIU Management meeting with President of Latvia E. Rinkēvičs
2024-08-16
Prohibition for vehicles registered in the Republic of Belarus to enter the EU