Shell company clampdown won't affect startups

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The state has decided to narrow down the criteria on the shell company ban that would prohibit banks from doing banks with highly dubious firms, reported LTV April 3.

The ban will not apply to companies that have an address but don't have a place of business. Instead, only companies established in tax havens and having no proof of doing actual business will be prevented from doing business with Latvian banks. 

"The.. [shell company ban] will not apply new companies not requiring premises to operate but which are registered in Latvia. This way we're protecting startups and new companies that need some time to rev up," said Finance Minister Dana Reizniece-Ozola.

The new regulation will also stipulate increased cooperation between banks and the authorities, in order to facilitate information exchange. 

The government had planned to adopt the shell company ban this week, but it will instead be looked through in the next so that it could be changed. 

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