The authorities responsible for the changes in the financial system and the investigation of economic crimes are convinced that the new international report will be beneficial for Latvia and its investment environment. However, it will not be a quick process - the report will be ready in about a year.
The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism - MONEYVAL is a permanent monitoring body of the Council of Europe entrusted with the task of assessing compliance with the principal international standards to counter money laundering and the financing of terrorism and the effectiveness of their implementation, as well as with the task of making recommendations to national authorities in respect of necessary improvements to their systems
The Moneyval assessment also usually contains various recommendations for the country and is regarded as an important barometer by investors.
The previous evaluation of Moneyval for Latvia was made in 2018, when Latvia's attempts to clean up its banking system were still ongoing after the country developed an unsavory reputation during the previous decade.
Back then, there was a threat of Latvia being included on the Moneyval "gray list" – among the countries with weak control over money laundering.
Officials instigated wide-ranging reforms and in 2020, Latvia managed to avoid being included on the gray list, which would likely have a had a serious economic impact.
However, the earlier Moneyval report remained unchanged, which is why Latvia is the first country to apply for the preparation of a new report, which begins with two weeks of work together with Moneyval experts in Riga.
Toms Platacis, head of the Financial Intelligence Service said: "This process is aimed precisely at the fact that we can finally show how Latvia looks today. There will be a new efficiency and technical report on how we implement laws and apply them in practice. This could be one of the things that will contribute to a positive investment climate in the country, especially in the financial sector," said Platacis.
These days a strong and stable financial system has been established in Latvia to protect against the legalization of proceeds of crime, the financing of terrorism and the financing of the distribution of weapons of mass destruction, said said Kristaps Markovskis, head of the Money Laundering Prevention Department of the Bank of Latvia.
"This is not only a story of Latvia's reputation. Banks have reviewed their customer bases, realizing that there are customers whose risks they cannot manage. I am talking specifically about customers from the Russian region. Also, banks and financial systems have significantly strengthened control in order to improve this risk management," Markovskis asserted.
Latvia is the first country examined by Moneyval in a sixth evaluation round. Latvia will receive the full report at the end of next year.
