MONEYVAL concludes that Latvia has a comprehensive legal structure to combat money laundering and terrorist financing, and has taken significant legislative steps to remedy many of the deficiencies identified in the previous evaluation, particularly on prevention. A new Law on the Prevention of Laundering the Proceeds from Criminal Activity and of Terrorist Financing brought the money laundering offence more into line with international standards. Although convictions for money laundering have been achieved in practice, more training for law enforcement is needed on the evidence required to establishing the underlying criminality in stand-alone ML cases.
The amendments to the Criminal Procedural Law have improved the legislative framework for asset recovery, particularly by subjecting indirect proceeds of crime to confiscation. The legal framework for freezing, seizing and confiscating is generally applied, although the production of statistics needs to be improved to fully demonstrate Latvia’s effectiveness in asset recovery.
The report also identifies a number of deficiencies in the regime of freezing terrorist assets under the United Nations Security Council Resolutions, and the need to clarify the regime for reporting suspicious transactions involving financing of terrorism. (more...)