The Council of Europe’s anti-money laundering and counter-terrorist financing monitoring body, MONEYVAL, published an evaluation of Latvia’s effectiveness in combating money laundering, terrorist financing and proliferation financing and its compliance with the Financial Action Task Force Recommendations, based on an on-site visit in November 2024. The report concludes that Latvia performs strongly overall, while identifying areas for improvement, particularly in the supervision of parts of the non-financial sector. Latvia is assessed as having a well-developed understanding of its money laundering and terrorist financing risks, supported by national risk assessments and sustained political commitment, alongside a solid record of international cooperation. The Financial Intelligence Unit is highlighted for its access to information and the quality of its operational and strategic analysis, which is routinely used by law enforcement. Risk-based supervision is described as comprehensive in the financial sector, with improvements in the banking sector supported by enhanced risk-assessment tools and inspection planning by Latvijas Banka, while the report calls for improvements to the State Revenue Service’s risk assessment methodology and for the Latvian Council of Sworn Advocates to develop a fully risk-based approach. The evaluation also notes a robust beneficial ownership transparency framework, effective investigations and sanctions for natural persons, comparatively limited pursuit of legal persons, and strong asset recovery supported by non-conviction-based confiscation, although the length of criminal proceedings can delay final confiscation outcomes and repatriation. On terrorist financing, Latvia is assessed as having mechanisms to detect, investigate and disrupt activity and to implement targeted financial sanctions, but awareness in some non-financial sectors, particularly the legal profession, remains uneven. Latvia received a roadmap of Key Recommended Actions to be completed within three years, was placed under regular follow-up, and is due to report back to MONEYVAL in June 2028.
Council of Europe 2026-02-19
Council of Europe’s MONEYVAL finds Latvia’s AML CFT framework effective but calls for stronger supervision of some non-financial sectors
MONEYVAL, the Council of Europe's anti-money laundering and counter-terrorist financing body, evaluated Latvia's effectiveness, noting strong performance but improvement needs in non-financial sector supervision. The report highlights Latvia's robust risk understanding, international cooperation, and beneficial ownership transparency, while calling for enhancements in risk assessment methodologies and legal person pursuit. Latvia is under regular follow-up with a roadmap for key actions by 2028.