A new report focused on money laundering in Latvia has warned that the large financial flows passing through the country pose a significant threat.

The MONEYVAL report found that as Latvia is a regional financial centre, with a majority of its commercial banks focusing on servicing foreign customers, mainly from CIS countries, one of its key money laundering (ML) risks remains the vulnerability of CIS countries to economic crime, especially corruption.

Latvia’s own level of corruption, vulnerability to international organised crime and significant shadow economy are also key factors of the overall ML risk faced by Lat...