Latvia has received international recognition for its ability to effectively combat financial crime and ensure the security of its financial system, the Finanšu izlūkošanas dienests (FID) told LETA, commenting on the report published by Moneyval — the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism — on the results of Latvia’s sixth-round mutual evaluation.
The Moneyval report was published on Thursday.
According to FID, the report highlights that Latvia has achieved high or substantial levels of effectiveness in almost all assessed criteria. The evaluation acknowledges Latvia’s significant progress and long-term commitment to combating financial crime.
Prime Minister Evika Siliņa stated that Latvia has eliminated the previously identified high risks in the financial sector and is now a safe and reliable country for investment.
“We have addressed the high financial risks, and Latvia is a secure and trustworthy country for investment. This is also confirmed by Latvia being among the first countries evaluated under the new FATF standards.
We are pleased that the government’s focused efforts have delivered results,”
Siliņa said.
Finance Minister Arvils Ašeradens noted that following the financial sector turmoil in 2018, Latvia made a deliberate political decision to implement deep structural reforms to establish a transparent, secure and internationally compliant financial supervision framework.
“Today we have built a regulatory and supervisory system based on effectiveness, interinstitutional cooperation and a risk-based approach. A strong and trustworthy financial system is a crucial component of national security and economic competitiveness — it strengthens investor confidence, reduces reputational risks and positions Latvia as a safe and attractive partner in international financial circulation,” Ašeradens said.
FID considers the evaluation results to confirm that it is one of the leading financial intelligence units globally and a leader in international cooperation,
making a substantial and high-quality contribution to Latvia’s and global financial security.
FID Head Toms Platacis described the assessment as a clear signal that Latvia is recognised as a reliable and capable partner in the international fight against financial crime and sanctions evasion.
He emphasised that the key challenge going forward will be maintaining proportionality. In an effective system, institutions must assess when regulatory intervention is necessary and when it is not. By consistently applying a risk-based approach and ensuring that low-risk sectors are not overburdened, Latvia can strengthen its reputation while maintaining compliance with leading international standards, Platacis explained.
According to FID, experts particularly praised improvements in the quality of reporting, the introduction of technological solutions and enhanced cooperation with reporting entities and law enforcement authorities.
Moneyval experts described FID as an effective, modern and technologically advanced institution
providing high-quality financial intelligence. The national risk assessment process for money laundering, terrorist financing and proliferation financing — implemented under FID leadership — promotes a unified and responsive understanding of Latvia’s risk landscape.
Financial Action Task Force (FATF) is the international body that sets and monitors standards for combating money laundering, terrorist financing and proliferation financing.
Moneyval, operating under the Council of Europe, evaluates member states’ compliance with FATF standards.
Latvia volunteered to be the first country evaluated in the sixth round, and the results will influence the country for the next ten years, FID has indicated.
Approximately five years ago, Moneyval placed Latvia under enhanced follow-up
and warned of the possibility of being added to the so-called “grey list” — a list of countries with strategic deficiencies in anti-money laundering and counter-terrorist financing frameworks.
To avoid being grey-listed, Latvia implemented wide-ranging reforms — often described as a “capital overhaul” of the financial system — which included significantly stricter requirements for credit institutions’ clients and had a negative impact on access to financing.
The latest evaluation suggests that these reforms have achieved their intended objective: restoring international confidence in Latvia’s financial system.
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