Financial Intelligence Unit of Latvia (FIU Latvia)

Financial Intelligence Unit of Latvia (FIU Latvia)

 

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What is FIU Latvia?

Office for Prevention of Laundering of Proceeds Derived from Criminal Activity (FIU Latvia or Control Service) is a specially established institution of direct administration under supervision of the Cabinet of Ministers. 

The aim of institution is to prevent the use of the financial system of the Republic of Latvia for money laundering and terrorist financing.

Who is the Head of FIU Latvia?

The FIU Latvia is managed and represented by its Head of FIU. Saeima, upon recommendation of the Cabinet of Ministers, appoints the Head of FIU Latvia for five years.

What are the functions of FIU Latvia?

FIU Latvia pursuant to the Law exercises control over unusual and suspicious financial transactions and acquires, receives, registers, processes, compiles, stores, analyses, and provides to pre-trial investigative institutions, the Prosecutor’s Office, and court information that may be used for the prevention, detection, pre-trial criminal proceedings, or adjudication of money laundering, terrorism financing, or an attempt to carry out such actions, or another associated criminal offence.

What are proceeds of crime?

The term “proceeds of crime” is used in the meaning of the term “criminally acquired property and financial resources” as used in the Criminal Procedure Law.
Funds are considered proceeds of crime:

  1. if they are owned or possessed by a person as a result of a direct or indirect criminal offence; or

  2. if the value of the property is not commensurate with the person's legal income and the person does not prove that the property has been acquired lawfully, the property can be recognized as a “proceeds of crime,

  3. property belongs to person, who is a member of an organized group or supports it or person is linked to terrorism.

In addition to the proceeds of crime definition provided for in the The Criminal Law funds which belong to the following person or are directly or indirectly controlled by the following person shall also be considered proceeds of crime:

  1. who can be found on any list of persons suspected of being involved in terrorist activity or production, storage, transportation, use, or distribution of weapons of mass destruction compiled by the states or  international organisations recognized by the Cabinet of Ministers; or

  2. who has been included in the list of sanction subjects compiled by the Cabinet of Ministers on the basis of International and the Republic of Latvia National Sanctions Law for the purpose of combating  involvement in terrorist activities or production, storage, transportation, use, or distribution of weapons of mass destruction; or

  3. regarding whom bodies performing investigatory operations, pre-trial investigative institutions, the Prosecutor’s Office, or a court have information forming sufficient basis to suspect such person of  committing a criminal offence related to terrorism or participation therein.

What is Money laundering?

 The following actions are money laundering:

  1. the conversion of proceeds of crime into other valuables, change of their location or ownership while being aware that these funds are the proceeds of crime, and if such actions have been carried out for the purpose of concealing or disguising the illicit origin of funds or assisting another person who is involved in committing a criminal offence in the evasion of legal liability;

  2. the concealment or disguise of the true nature, origin, location, disposition, movement, ownership of the proceeds of crime, while being aware that these funds are the proceeds of crime;

  3. the acquisition, possession, use or disposal of the proceeds of crime of another person while being aware that these funds are the proceeds of crime;

The actions referred above, when a person deliberately assumed the funds to be criminally acquired, shall also be regarded as money laundering.

What is Terrorism?

Terrorism is the use of explosives, burning, use of nuclear-chemical, chemical, biological, bacteriological, toxic, or other weapons of mass destruction, mass poisoning, spreading of epidemics and epizootic diseases, kidnapping of persons, taking hostages, hijacking of air, land, or sea means of transport, or other activities if they are committed for the purpose of intimidating inhabitants or forcing the State, its institutions, or international organisations to take any action or refrain from taking it, or for the purposes of harming the interests of the State, the inhabitants, or international organisations.

What is Financing of Terrorism?

Terrorism financing is direct or indirect collection or transfer of funds or other property acquired in any manner for the purpose of or in the knowledge that such funds or other property will be fully or partly used to perform terrorist activities.
Financing of terrorism is transfer of funds obtained in any way to a terrorist group or an individual terrorist for their disposal.

What is Proliferation?

"Proliferation" or "Financing of proliferation" refers to activities involving the provision of funds or the provision of financial services that use nuclear, chemical or biological weapons and their means of delivery, as well as related material for production, acquisition, possession, development, export, handling, brokering, transportation, transfer, accumulation or use of raw materials, in violation of national law or, where applicable, failure to comply with applicable international obligations.

What sort of punishment is prescribed for money laundering, terrorism, terrorist financing or proliferation?

A person who performs money laundering, terrorism, terrorist financing or proliferation shall be criminally punishable.

How to inform FIU Latvia regarding possible criminal activity?

Reporting the FIU Latvia of a possible criminal offense can be done in one of the following ways:

Where is FIU Latvia located?

FIU Latvia is located in Riga, Latvia at Raiņa Boulevard 15 (entrance from back yard).

Telephone: +371 67044430