The Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL) published its evaluation of Latvia’s anti-money laundering, counter-terrorist financing and counter-proliferation financing (AML/CFT/CPF) system, assessing effectiveness and compliance with Financial Action Task Force Recommendations as of the November 2024 on-site visit. The report credits Latvia with strong overall performance and significant progress since its previous evaluation, while flagging remaining gaps, notably in risk-based supervision of parts of the non-financial sector. Latvia is assessed as having a well-developed understanding of money laundering and terrorist financing risks, supported by national risk assessments, and a solid record of international cooperation. The Financial Intelligence Unit is highlighted for its strong access to information, reforms and high-quality analysis that is routinely used by law enforcement, alongside effective cooperation with investigative bodies. Risk-based supervision is described as comprehensive in the financial sector, particularly banking, where Latvijas Banka has strengthened risk-assessment tools and inspection planning; by contrast, MONEYVAL calls for improved risk assessment methodology by the State Revenue Service and for the Latvian Council of Sworn Advocates to implement a fully risk-based supervisory approach. The evaluation also notes a robust beneficial ownership transparency framework, effective investigations and sanctions for natural persons, more limited pursuit of legal persons relative to the risk profile, and strong asset recovery using non-conviction-based confiscation, albeit with delays to final confiscation and repatriation due to the lifecycle of proceedings. On terrorist financing, mechanisms to detect, investigate and disrupt activity are in place, targeted financial sanctions can be implemented in a timely manner, and uneven awareness persists in some non-financial sectors, particularly within the legal profession. Latvia received a three-year roadmap of Key Recommended Actions and was placed under regular follow-up, with reporting to MONEYVAL scheduled for June 2028.
Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL) 2026-02-19
Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL) finds Latvia has strengthened AML CFT and proliferation financing controls but needs more risk-based oversight of some non-financial sectors
MONEYVAL published its evaluation of Latvia's AML/CFT/CPF system, noting strong performance and progress since the last review, but highlighting gaps in risk-based supervision of the non-financial sector. The report commends Latvia's understanding of money laundering and terrorist financing risks, effective international cooperation, and robust beneficial ownership transparency. However, it calls for improved risk assessment by the State Revenue Service and the Latvian Council of Sworn Advocates, and notes delays in asset recovery processes.