The leading report by MONEYVAL, the Committee of Experts of the Council of Europe, on the international evaluation of anti-money laundering in Latvia assessing the effectiveness of its anti-money laundering system was published today. In this 6th round evaluation report, all focus areas in the remit of Latvijas Banka were found compliant or received the highest rating.
Kristīne Černaja-MežmaleMember of the Council of Latvijas Banka"Strong international standing of Latvia in preventing financial crime is a part of our security guarantees. As a country, we have received a excelent international assessment of our established anti-money laundering system. It means that we can leave the historic experience behind and focus on developing a secure and advanced financial sector. We can confidently take the next steps towards accelerating financial sector development, strengthening international cooperation in establishing correspondent banking relationships, and attracting foreign investment."
The report underlines that, in the focus areas of Latvijas Banka, the awareness of financial sector risks is data-based and compliant, measures applied by supervisory authorities are based on risk assessment conclusions, Latvijas Banka has a clear understanding of the risks faced by financial institutions, and supervisory effectiveness is high. In the largest segment of the financial market, i.e. credit institutions, risks have significantly decreased. Compliance in all sectors has been supported by an efficient supervision process, and training and communication offered by supervisors. This has been the priority of Latvijas Banka in recent years, as a common understanding of regulatory requirements forms the basis of a risk-based approach in practice.
As early as of 2020, Latvijas Banka (before this date, the Financial and Capital Market Commission) as the national supervisor of the financial sector has systematically reviewed the regulatory framework, significantly revised its approach to inspections, and undertaken extensive education efforts. And it has delivered the desired result. According to a survey, 85% of Latvian businesses face no problems in cooperating with Latvia's commercial banks.
In their recommendations, MONEYVAL experts noted lower risks in the credit institution segment, but growing risks in the comparatively new market segments that require a stronger supervision focus. This is the current focal point in supervision carried out by Latvijas Banka. It is driven by the formulated supervisory priorities and the inspection plan.
With this evaluation, we have laid a stable foundation for developing a secure, accessible, and innovative financial sector that is closely integrated with Europe and trusted by the strategic partners and investors of Latvia.
Policy makers, supervisory authorities, and the financial sector have managed to create a system that functions effectively and is able to manage risks. Every year, Latvijas Banka issues licences to new market participants, for example, eight licences were issued in 2025, including the first two licences to crypto-asset service providers at the end of the year. This work continues, as some other companies have progressed to various licensing stages.
Latvijas Banka extends its gratitude to the Financial Intelligence Unit for leading the evaluation process, and to the other 17 involved public institutions for cooperation towards a common goal that is of utmost importance for the financial sector, economy, and the rule of law in Latvia.