Latvian banks no longer accepting clients from “tax haven” jurisdictions

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In an effort to move in line with OECD (Organisation for Economic Co-operation and Development) member state requirements and the FATF (Financial Action Task Force), Latvia is hopeful to follow suit after Estonia’s acceptance to become an OECD member state.
Accordingly, banks in Latvia are following the recommendations and regulations of the financial institutions and have had to reconsider their principles of cooperation with companies registered in certain overseas jurisdictions, considered to be “tax havens”.

Including the above considerations, a global anti-offshore movement is taking place, aimed at providing more transparency at an international level in the fight against money laundering and terrorist financing.

On the 31st of December 2015, regulations regarding The Financial and Capital Market Commission No. 234 came into force in Latvia, which effectively administers the enhanced due diligence on a corporate scale. With the Money Laundering & Financing of Terrorism Prevention Law 7th Article becoming effective this year from the 1st of March. The introduction of this law increased supervision over transactions on a domestic level.

As a result of the shift in mentality regarding tax transparency on a global level and observing the introduction of domestic laws, two major banks in the Republic of Latvia have decided to limit their relations with clients from certain jurisdictions, specifically renowned for their tax haven status. It is expected that other banks in Latvia will also enforce similar regulations.

As of April 1st 2016, banks in the Republic of Latvia will no longer accept potential clients who have businesses registered in the following jurisdictions:

Anguilla (the United Kingdom of Great Britain and Northern Ireland).
Antigua and Barbuda.
United Arab Emirates.
Commonwealth of the Bahamas.
British Virgin Islands.
Bouvet Island.
Commonwealth of Dominica.
Guernsey (the United Kingdom of Great Britain and Northern Ireland).
Cayman Islands (the United Kingdom of Great Britain and Northern Ireland).
Republic of the Marshall Islands.
Isle of Man (the United Kingdom of Great Britain and Northern Ireland).
Republic of Panama.
Papua New Guinea.
Republic of Seychelles.
Federation of Saint Christopher and Nevis.
Federation of Saint Kitts and Nevis.
Saint Lucia.
Saint Vincent and the Grenadines.
However, the following recommendations for jurisdictions with legitimate tax optimisation programmes will still be accepted:

The United Kingdom (LLP, LTD, Scottish LP).
Hong Kong.
All other European Union Member States.
Eltoma Corporate Services provides incorporation in a number of above listed countries. Click on the jurisdictions to read more about the benefits and general administration of companies in these locations.