In Depth: Financial Sector Feels The Heat As Latvia Confronts AML Failings

Latvian authorities, spooked by a recent high-profile failure, have launched a belated assault on the dirty money coursing through the veins of the Baltic nation’s financial system — prompting warnings that payment companies may soon feel the sting of a renewed regulatory rollout.

Following the liquidation of the scandalised ABLV Bank earlier this year, the Latvian government has proposed a new law to crack down on the use of shell companies for money laundering.

Under the new rules, which are anticipated to come into force this month, banks and other financial institutions, including payment and e-money companies, are prohibited from opening accounts for or transferring funds on behalf of any company that meets the new definition of shell company.

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