TALLINN — While Estonia and Lithuania have escaped criticism, the U.S. state department has labeled Latvia as a high risk country for money laundering.

The U.S. state department published its annual international narcotics control strategy report on [private_supervisor]March 1, which states that Latvia is susceptible to significant money laundering threats tied to corruption, organized crime and non-resident bank account holders.

Most of the money laundered in Latvia was achieved via tax fraud — some of it originating from outside of Latvia — but also financial fraud, smuggling, and public corruption.

The report also stated that a portion of domestically obtained criminal proceeds derives from Russian organized crime, which is active in Latvia. Latvia has many commercial banks with a number of non-residents in their deposit bases.

Despite legislative and regulatory improvements, the report recommends that the government implement and make full use of the 2005 amendments to its Criminal Procedures Law and enforce the Anti-Money Laundering/Combating the Financing of Terrorism law.

“Latvia should continue to strengthen its risk-based approach to Anti-Money Laundering/Combating the Financing of Terrorism law and take steps to further enhance the preventative aspects of the law’s regime, including ensuring effective implementation of customer due diligence requirements and increased scrutiny of higher risk categories of transactions, clients and countries,” the study said.

The report also signalled the U.S.A. as a major concern for money laundering among other countries such as Russia, Afghanistan, Colombia, Australia, Spain, Brazil, Venezuela, Germany, France, Haiti, Italy, Israel, Nigeria, Thailand, and many others.

The report reflects the department’s analysis of the international drug control and money laundering environment in 2009.[/private_supervisor] [private_subscription 1 month]March 1, which states that Latvia is susceptible to significant money laundering threats tied to corruption, organized crime and non-resident bank account holders.

Most of the money laundered in Latvia was achieved via tax fraud — some of it originating from outside of Latvia — but also financial fraud, smuggling, and public corruption.

The report also stated that a portion of domestically obtained criminal proceeds derives from Russian organized crime, which is active in Latvia. Latvia has many commercial banks with a number of non-residents in their deposit bases.

Despite legislative and regulatory improvements, the report recommends that the government implement and make full use of the 2005 amendments to its Criminal Procedures Law and enforce the Anti-Money Laundering/Combating the Financing of Terrorism law.

“Latvia should continue to strengthen its risk-based approach to Anti-Money Laundering/Combating the Financing of Terrorism law and take steps to further enhance the preventative aspects of the law’s regime, including ensuring effective implementation of customer due diligence requirements and increased scrutiny of higher risk categories of transactions, clients and countries,” the study said.

The report also signalled the U.S.A. as a major concern for money laundering among other countries such as Russia, Afghanistan, Colombia, Australia, Spain, Brazil, Venezuela, Germany, France, Haiti, Italy, Israel, Nigeria, Thailand, and many others.

The report reflects the department’s analysis of the international drug control and money laundering environment in 2009.[/private_subscription 1 month] [private_subscription 4 months]March 1, which states that Latvia is susceptible to significant money laundering threats tied to corruption, organized crime and non-resident bank account holders.

Most of the money laundered in Latvia was achieved via tax fraud — some of it originating from outside of Latvia — but also financial fraud, smuggling, and public corruption.

The report also stated that a portion of domestically obtained criminal proceeds derives from Russian organized crime, which is active in Latvia. Latvia has many commercial banks with a number of non-residents in their deposit bases.

Despite legislative and regulatory improvements, the report recommends that the government implement and make full use of the 2005 amendments to its Criminal Procedures Law and enforce the Anti-Money Laundering/Combating the Financing of Terrorism law.

“Latvia should continue to strengthen its risk-based approach to Anti-Money Laundering/Combating the Financing of Terrorism law and take steps to further enhance the preventative aspects of the law’s regime, including ensuring effective implementation of customer due diligence requirements and increased scrutiny of higher risk categories of transactions, clients and countries,” the study said.

The report also signalled the U.S.A. as a major concern for money laundering among other countries such as Russia, Afghanistan, Colombia, Australia, Spain, Brazil, Venezuela, Germany, France, Haiti, Italy, Israel, Nigeria, Thailand, and many others.

The report reflects the department’s analysis of the international drug control and money laundering environment in 2009.[/private_subscription 4 months] [private_subscription 1 year]March 1, which states that Latvia is susceptible to significant money laundering threats tied to corruption, organized crime and non-resident bank account holders.

Most of the money laundered in Latvia was achieved via tax fraud — some of it originating from outside of Latvia — but also financial fraud, smuggling, and public corruption.

The report also stated that a portion of domestically obtained criminal proceeds derives from Russian organized crime, which is active in Latvia. Latvia has many commercial banks with a number of non-residents in their deposit bases.

Despite legislative and regulatory improvements, the report recommends that the government implement and make full use of the 2005 amendments to its Criminal Procedures Law and enforce the Anti-Money Laundering/Combating the Financing of Terrorism law.

“Latvia should continue to strengthen its risk-based approach to Anti-Money Laundering/Combating the Financing of Terrorism law and take steps to further enhance the preventative aspects of the law’s regime, including ensuring effective implementation of customer due diligence requirements and increased scrutiny of higher risk categories of transactions, clients and countries,” the study said.

The report also signalled the U.S.A. as a major concern for money laundering among other countries such as Russia, Afghanistan, Colombia, Australia, Spain, Brazil, Venezuela, Germany, France, Haiti, Italy, Israel, Nigeria, Thailand, and many others.

The report reflects the department’s analysis of the international drug control and money laundering environment in 2009.[/private_subscription 1 year]

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