RIGA - The president has rejected the controversial bill against money-laundering and funding for terrorism. It was only the third bill that the president has so far refused to sign into law.
President Valdis Zatlers said the bill was "very sloppy, rushed and low quality," and that if it became law there would be harsh consequences for Latvia's international reputation. The bill will now be sent back to Parliament, which will decide on whether to revise or scrap it.
The bill had been heavily criticized by opposition leaders for its failure to consider concerns raised by the prosecutor's office, which claimed that it would make it more difficult to fight money-laundering and terrorism funding crimes.
"Clearly narrow the definition of illegal proceeds and hamper the work of law enforcement authorities in solving money laundering crimes," opposition New Era party leader Solvita Aboltina told the press.
The opposition alleged that the bill would make it easier for people to avoid prosecution for large scale money laundering, a veiled reference to so-called Latvian "oligarch" and suspended Ventspils Mayor Aivars Lembergs, who is currently under investigation for a number of crimes including money-laundering.
MPs from the Greens and Farmers Union, the party that created the bill, said that it was not in any way related to Lembergs, a reputed oil tycoon and major party backer who previously stood as a prime ministerial candidate for the Greens.
Greens and Farmers Union parliament faction head, Augusts Brigmanis, told the press that the party was willing to discuss changes in the bill, but was first waiting for a detailed list of the objections raised on it. The bill had previously been passed with 64 votes for, 20 against and six abstentions.
According to an EU objective on combating financial crimes, the bill should have been passed by December 2007. The bill's timing, however, also coincides with a some major money laundering rings that have been exposed over the course of the past several months.
In addition to the Lembergs case, two major money laundering operations in March that processed nearly 10 million lats highlighted the scope of the growing problem in Latvia.
