Banks, Financial Services, Latvia, Risk management, USA

Daniel Thelesklaf. Photo: Twitter

Moneyval in the the fifth round of the evaluation of the Latvian Anti-Money Laundering and Terrorist Financing (AML/CTF) system concluded that Latvia is a subject to enhanced follow-up procedures. Latvia is in enhanced follow-up because of the number of Low and Moderate ratings awarded for Effectiveness. Two areas were considered to have low levels of effectiveness - relevant beneficial ownership information and preventing proliferation financing.

After the meeting with ministers and heads of state institutions, Thelesklaf underscored that Latvia has to work much to efficiently combat money laundering and terrorism financing risks.

In his words, Latvian legislation is quite strict in the area of AML, but the problem is application of the law. Moneyval expects better results in a short period of time.

Thelesklaf did not doubt professionalism of the Latvian authorities, but said that AML/CFT has not been among Latvia’s priorities for too long.

As the report covers a time period until the end of 2017, it has not evaluated Latvia’s performance in AML/CFT this year. These achievements will be evaluated and considered in the next Moneyval report that will be published in 2022.