The EU institutions (European Commission, European Parliament, EU Council, European Council, etc.) draft legal acts, adopt recommendations and make policy decisions on various matters within the framework of the EU, including matters related to the Economic and Monetary Union (EMU). Traditionally, the leading role in the process of decision-making and expressing Latvia's opinion in the above EU institutions belongs to the government. Representatives of Latvijas Banka, in cooperation with the public administration institutions, participate in the analysis of new EU initiatives and follow up on the compliance with the existing EU framework. Latvijas Banka's experts also contribute to the development of national positions on the issues related to operating activity of Latvijas Banka and the Eurosystem.
The central banks are represented in the Committees and Working Groups of the EU Council and the European Commission. In Brussels, Latvijas Banka's representatives are engaged in the Economic and Financial Committee and its subcommittees as well as in the Working Groups of the European Commission, dealing with issues related to the International Monetary Fund, euro coins, payment systems, economic forecasting, statistics and other issues within the fields of competence of Latvijas Banka.
The Authority for Anti-Money Laundering and Countering the Financing of Terrorism
The new EU authority – the Authority for Anti-Money Laundering and Countering the Financing of Terrorism, also Anti-Money Laundering Authority, AMLA – started its operations on 1 July 2025, its overarching aim being strengthening and centralising the fight against laundering of proceeds from criminal activity and financing of terrorism in the EU. AMLA’s task is to improve the quality of supervision, to contribute to the convergence of supervisory practices in the EU Members States and to ensure harmonised application of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) rules in the EU.
As well, AMLA:
- supervises and assesses the risks associated with money laundering and financing of terrorism in the EU;
- co-ordinates information exchange among the EU financial intelligence units (FIUs) and arranges cross-border analysis;
- develops uniform supervision standards, methodology and best practice cases;
- establishes a central database for the EU and national supervisory authorities;
- exercises direct or indirect supervision of also those service providers of the financial and non-financial sectors that pose elevated money laundering risks.
As of 2028, AMLA will start exercising direct supervision of about 40 high-risk financial institutions (obliged entities) that will have been selected in line with legally binding acts and uniform EU risk assessment methodology.
Latvijas Banka takes part in AMLA at both the decision-making level in AMLA Board in the supervisory composition and the level of experts in task forces and committees.