On Thursday, 13 June, the Saeima adopted amendments to the Law on International Sanctions and National Sanctions of the Republic of Latvia in the final reading under urgent procedure. These amendments are essential for the implementation of the Moneyval recommendations and the improvement of the financial system of Latvia stipulating that the UN financial and civil sanctions shall be enforced without delay. 

"To meet the requirements set out in the Moneyval report and strengthen Latvia’s capacity to combat money laundering and financing of terrorism, we must eliminate the risks that affect not only our national security, but also the stability and international reputation of the financial sector. The purpose of the amendments is to facilitate the implementation of the Moneyval recommendations that will substantially strengthen our financial sector and the capacity to resist modern threats," Rihards Kols, Chair of the Foreign Affairs Committee responsible for the draft law, had said earlier. 

The amendments introduce a formal and legal mechanism for Latvia to propose the imposition of international sanctions without imposing national ones. As explained in the annotation, Latvia already has such right at the international level. 

The amended law also includes an updated list of competent authorities, which are responsible for the enforcement of international or national sanctions and the enforcement supervision or control, and provides that the sanctions binding to Latvia shall be respected by all persons and entities in Latvia. The amendments also clarified the provisions regarding the compliance with sanctions in public procurement, as well as introduced regulation on the rights of bodies governed by public law to conclude contracts in the event of sanctions. 

Meanwhile, to coordinate the work of the competent authorities and promote a single approach to the application of legislation, the amendments delegate to the Cabinet the task of setting up the Sanction Coordination Council. 

The amendments also stipulate the obligation to report on any attempts to violate international and national sanctions, on potential breaches, as well as funds frozen due to such breaches. At the same time, persons who report cases of potential violation of sanctions to any of the competent authorities or the State Security Service are exempt from legal and civil liability.

Saeima Press Service