RIGA - Latvia's Parliament last week passed amendments to several laws that will boost the state's efforts to battle money laundering in the country's banking system, which since the start of the year has dogged the country.
Whereas previously a license could be annulled only in case of regular violations, amendments to the Law on Credit Institutions enable supervisory authorities to annul a banking license upon one serious breach.
In addition, enforcement agencies will be able to gain access to information on bank accounts even before opening a criminal case. All that will be needed is a judge's order.
The amendments also introduce fines between 5,000 's 100,000 lats (7,100 's 142,300 euros) that can be imposed on banks for violations of requirements under the Law for Prevention of Money Laundering.
This latter law was also amended to include a definition of a "true beneficiary" and the procedure for determining this. From now on it will be the clients' obligation to provide the information requested by banks, including information and documents about the true beneficiary.
Amendments to the Criminal Law introduce criminal liability for providing false information to banks.
All legislative amendments will take effect upon their publication in the official newspaper, Latvijas Vestnesis (Latvian Herald).
The prerogative to fight money laundering arose early in the year after Prime Minister Aigars Kalvitis said that the government had received reports from foreign countries on extensive illegal financial operations through the banking system and reports that prior to that point officials had largely ignored the problem.
In April the U.S. Treasury Department blacklisted two banks 's VEF Banka and Multibanka 's on suspicion of money laundering.
