Latvia has received a landmark international assessment confirming the country’s effectiveness in combating money laundering, terrorism and proliferation financing, further strengthening its reputation as a secure, transparent and innovation-driven country. The report published by the MONEYVAL recognises Latvia’s system as robust, well-coordinated and highly effective, marking an important milestone in Latvia’s strategic positioning as a potential fintech and Web3 hub within the European Union.
On 19 February, MONEYVAL released the results of Latvia’s 6th round mutual evaluation, conducted under the updated standards of the Financial Action Task Force (FATF). Latvia achieved high or substantial levels of effectiveness across almost all Immediate Outcomes, demonstrating significant progress since the structural reforms initiated after 2018. Notably, Latvia became the first country in the FATF Global Network to be assessed under the new round of evaluations, underscoring both its preparedness and its willingness to be benchmarked against the highest global standards.
“The latest MONEYVAL report confirms that Latvia has made strong progress in strengthening trust, transparency, and financial integrity. This gives us a solid foundation to move faster and think bolder. Latvia has already taken important steps to become one of the most attractive environments in Europe for Web3 and crypto companies, and we will continue to actively support this sector and position Latvia as a competitive global player in the digital economy,” says Minister of Economics of the Republic of Latvia, Viktors Valainis.
For Latvia, this international recognition goes beyond compliance. It is a strategic signal to international investors, fintech innovators and Web3 entrepreneurs that Latvia offers a stable, credible and forward-looking regulatory environment. A strong and internationally trusted AML/CFT framework is a prerequisite for sustainable financial innovation, digital asset development and cross-border investment.
“Over recent years, Latvia has implemented deep structural reforms to build a transparent, secure and internationally trusted financial sector. This evaluation confirms that our efforts have delivered tangible results. A strong supervisory and risk-based framework is not a barrier to innovation — it is the foundation for responsible growth and long-term competitiveness,” says Ieva Jāgere, Director of the Investment and Development Agency of Latvia.
Latvia’s approach combines strict adherence to international AML/CFT standards with openness to financial innovation. The regulatory and supervisory authorities apply a proportionate, risk-based supervision model, ensuring that higher-risk sectors are effectively controlled while innovative and low-risk businesses are not subject to unnecessary administrative burden. This balance creates a predictable, agile and innovation-friendly ecosystem that is particularly attractive for fintech, digital payments and crypto-asset service providers.
The Financial Intelligence Unit of Latvia has played a central role in coordinating inter-institutional cooperation, strengthening national risk assessments and enhancing international information exchange. Financial crime is treated not only as an economic issue but as a matter of national security and economic resilience, contributing to a safer and more stable financial system.
At the same time, Latvia is actively positioning itself as one of the most competitive jurisdictions in the European Union for companies seeking authorisation under the Markets in Crypto-Assets (MiCA) framework and Electronic Money Institution (EMI) regulation.
“Crypto companies — come to Latvia and acquire your MiCA and EMI licenses here. Join the growing Web3 community, partner with fintech-friendly banks, enjoy some of the lowest supervision fees in the EU, pay share capital with crypto and grow your business in an agile ecosystem,” says Reinis Znotiņš, Chairman of the Latvian Blockchain Association.
With strong political backing, regulatory clarity and internationally recognised supervisory effectiveness, Latvia offers fintech and Web3 companies a trusted gateway to the European Union market — combining security, credibility and innovation in one jurisdiction.
