16.05.2018. Credit and payment institutions in Latvia are prohibited to cooperate with certain shell companies

News

On May 9, became in force amendments to the Law on Prevention of Money Laundering and Terrorist Financing.

The law requires credit and payment institutions to stop cooperation with the following shell companies:
1) which do not conduct real economic activity (or there is no economic value of the activity) and, in the same time
2) are not required to submit financial statements.
According the law, the ban on cooperation does not apply to companies that do not have an office for business in the country of registration.

Credit and payment institutions within 14 days from the day the law comes into force must notify the shell companies that correspond to the mentioned criteria about the termination of business relations and within 60 days to terminate business relations and conduction of the one-off transactions.