Latvia’s AML/CFT system recognised as highly effective

Latvia has received a leading international assessment confirming the country’s effectiveness in combating financial crime. The evaluation recognises Latvia’s robust, well-coordinated and highly effective system to prevent money laundering, terrorism financing and proliferation financing, strengthening both national security and the integrity of the international financial system.

On 19 February, the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) published the results of Latvia’s 6th round mutual evaluation.

Strong Results Across Key Effectiveness Areas

The report concludes that Latvia achieved high or substantial levels of effectiveness across all Immediate Outcomes (IOs), with one exception. Overall, the findings acknowledge Latvia’s significant progress and sustained commitment to strengthening its AML/CFT/CPF framework.

Prime Minister Evika Siliņa emphasised:

“We have eliminated high risks in the financial sector, and Latvia is a safe and reliable country for investment. This is also confirmed by Latvia's choice to be among the first countries to be assessed according to the new FATF standards. We are pleased that the government's targeted work has yielded results.”

Minister for Finance Arvils Ašeradens highlighted the long-term reform efforts:

“Following the financial sector turmoil of 2018, Latvia made a deliberate political decision to implement profound structural reforms, building a transparent, secure, and internationally compliant financial sector supervisory system.”

A Risk-Based and Coordinated Framework

Latvia’s current regulatory and supervisory framework is built on:

• effectiveness,

• strong interinstitutional cooperation,

• a comprehensive risk-based approach.

This framework enhances national security, boosts investor confidence, mitigates reputational risks and strengthens Latvia’s position as a reliable and competitive partner in the international financial system.

Central Role of the Financial Intelligence Unit

The Financial Intelligence Unit of Latvia (FIU Latvia) played a central role in coordinating national reforms and ensuring a unified understanding of risks. Financial crime is no longer viewed solely as an economic offence, but as a threat to national stability and security.

Head of FIU Latvia Toms Platacis stated:

“This evaluation sends a strong signal that Latvia is now recognised as a reliable and effective partner in the global fight against financial crime and sanctions evasion.”

He added:

“The real test ahead is maintaining proportionality. A mature system knows when intervention is necessary and when it is not. By applying the risk-based approach decisively while ensuring that low-risk sectors are not burdened unnecessarily, Latvia strengthens its credibility and remains fully aligned with leading international standards.”

The report recognises FIU Latvia as a highly effective institution and a global leader in international cooperation, particularly in producing high-quality financial intelligence, leading national risk assessments and enabling successful investigations through strategic guidance and inter-agency cooperation.

First Assessment Under the New FATF Evaluation Round

On 13 June 2025, the joint FATF/MONEYVAL Plenary adopted Latvia’s 6th round mutual evaluation report. Latvia became the first country assessed under the new FATF global evaluation round. The assessment covered measures implemented and results achieved between 11 November 2017 and 15 November 2024, with the on-site visit conducted in November 2024.

About the Mutual Evaluation

The mutual evaluation is the leading international assessment in the field of AML/CFT/CPF. It provides a comprehensive peer review of each country’s implementation of FATF Standards and analyses the effectiveness of national systems in preventing the misuse of the financial system for criminal purposes.

The FATF (Financial Action Task Force) is the global standard-setter for combating money laundering, terrorism financing and proliferation financing.

MONEYVAL is a committee of experts of the Council of Europe responsible for assessing member states’ compliance with FATF standards in accordance with FATF methodology.

More information:
https://fid.gov.lv/en/roles-and-responsibilities/moneyval-2