Over the last five years, Latvia has done a great deal in the fight against money laundering, so now that very significant economic sanctions are being imposed on Russia, we can feel much safer and more stable than a few years ago at this week’s high-level forum “Where is the money going? (ie) kumi or the path to secure finances in Latvia “said Ilze Znotina, Head of the Financial Intelligence Service.
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She emphasized that money laundering, terrorist financing and the circumvention of sanctions were a direct issue for national and global security. “In the context of the current situation in Ukraine, we can see even more important and valuable the” overhaul “of the financial sector a few years ago, after which banks, entrepreneurs, law subjects know their partners much better. Thanks to the hard work we did, today we are in a much better situation – both as a country, our economy, the financial sector and every entrepreneur, “said Znotina.
Opening the forum, Evika Siliņa, the Parliamentary Secretary to the Prime Minister of Latvia, pointed out that after the excellent work done in arranging the financial sector, our country is now perceived as a reliable NATO partner, and member states such as Canada, Spain, the Czech Republic and others entrust their troops. our national security.
She thanked all entrepreneurs and public authorities for their work in good faith, so that together they could get rid of dirty money and promote fair competition. Siliņa emphasized that the new plan for combating the shadow economy, which is currently being considered by the Cabinet of Ministers, will introduce a new approach, both giving more flexibility to entrepreneurs to manage their risks and to the State Revenue Service for risk management.
Arnis Sauka, a professor at the Riga Graduate School of Economics and chairman of the Vidzeme University Council, pointed out that the amount of taxes from the shadow economy – tax evasion and smuggling – currently reaches more than 2 billion euros or about 9% of Latvia’s gross domestic product. “It affects the competitiveness of the economy, the business environment and the attraction of investment. Unfortunately, the fight against the shadow economy is even more complicated than the fight against money laundering, because some of the entrepreneurs who evade taxes are also large enough taxpayers, “said Sauka.
He emphasized that it was important for Latvia’s growth to reduce tax evasion, especially for envelope wages, which is not only a question of the possibility and consequences of catching, but also of encouraging entrepreneurs and society to pay taxes. “In order to achieve this, it is necessary to improve inter-institutional coordination and cooperation between various state institutions, as well as better cooperation between the public and private sectors,” Sauka is convinced.
Ieva Jaunzeme, Director General of the State Revenue Service, emphasized the aspect of tax morality, which should be increased among entrepreneurs and society. “Not all of the service’s activities are aimed at direct fiscal benefits, we are also working to create a comprehensive system to raise awareness that everyone is part of the system and that industry is not being left out. Although the biggest tax gap is caused by the illegal circulation of excise duties, VAT schemes and evasion of state social contributions, everyone can sometimes be tempted to pay less than they should, thus affecting the national economy, “said Jaunzeme.
She admitted that many still admit that the employer does not officially report all the hours worked and part of the salary paid in an envelope, thus reducing the employee’s own social guarantees.
At the forum “Where are the Money Laws or the Road to Secure Finances in Latvia”, public officials and experts evaluated the progress made in the field of money laundering prevention, analyzed trends and risks, as well as discussed future directions for preventing money laundering and reducing the shadow economy.
The event was organized by the Financial Intelligence Service in cooperation with the Ministry of the Interior as part of the annual ‘Know Your Money’ campaign.
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