Sanctions need global unity to be effective - FIU chief

RIGA - Sanctions need global unity to be effective, Toms Platacis, Chief of the Financial Intelligence Unit (FIU), said Thursday at the conference "Guarding the border: sanctions, export controls and corporate responsibility".

The FIU chief noted that more than three years have passed since Russia's full-scale invasion of Ukraine, and during this time both individual and collective awareness of the importance and use of sanctions has increased.

Platacis said that from the first day of the war, FIU's objective was to ensure that Latvia's financial system was not used to circumvent sanctions or support aggression. This has been achieved by tracing suspicious financial flows, identifying the real beneficiaries, and holding the institutions involved to account.

The FIU chief emphasized that the enforcement of sanctions is a priority for the service, and for the second year, the FIU is also the national competent authority for sanctions enforcement. According to Platacis, having one central authority in the country ensures the effectiveness of sanctions enforcement, and a uniform, consistent approach is the right way forward not only at national level but also at global level.

Regarding the latest European Union (EU) sanctions package, Platacis stressed that it increases pressure on Russia's war economy, targeting the energy, financial, and military-industrial sectors, as well as supporters and profiteers of military aggression. He pointed out that work is underway on proposals for the 20th sanctions package, stressing the need to invest in the effectiveness of sanctions and to ensure coherence in global implementation.

Platacis said that the task is clear: to secure borders, maintain pressure, prevent risks of sanctions circumvention, and strengthen cooperation, as sanctions enforcement is not the responsibility of one country alone, but a shared responsibility of the EU and NATO.

As reported, at the end of October, EU member states adopted the 19th package of sanctions against Russia, targeting such essential sectors as energy, finance, the military-industrial base, special economic zones, and supporters and profiteers of Russia's war.

In October, the US decided to impose sanctions on Rosneft and Lukoil, Russia's two largest oil companies, over Russia's refusal to end the war against Ukraine.