About 20,000 Latvian firms to be affected by shell company ban

About 20,000 Latvian enterprises should cease cooperation with shell companies, Daiga Kiopa, a board member of Lursoft business database operator told LETA news agency April 10. 

She said that the amendments to the law on the prevention of money laundering and terrorism financing do not refer only to the Latvian banking sector. "They will also refer to such companies as tax consultants, lawyers offices, accountancy firms, and others. These are all together about 20,000 companies," said Kiopa.

She said that the banks now are actively assessing their customers. "Those are huge resources spent on this process because nobody wants to face a similar situation as ABLV Bank," said Kiopa.

The new amendments will also affect investors’ mood and the national economy in general. Investments are not expected to grow steeply in the nearest time, said Kiopa.

As reported, the Finance Sector Development Council chaired by Latvian Prime Minister Maris Kucinskis on March 21 supported banning of shell companies in Latvia.

Finance Minister Dana Reizniece-Ozola (Greens/Farmers) said that the purpose of banning shell companies was to make the Latvian finance sector stable, sustainable and safe and to ensure that it offered services driving the economic growth instead of creating risks.

The amendments to the law on the prevention of money laundering and terrorism financing still should be adopted by the parliament.

    Related articles
    Economy
    Economy