The amount of cash in circulation in Latvia has leveled out as a result of borders becoming closed following the start of Covid-19 pandemic, as reported by the Financial Intelligence Unit (FID) manager Ilze Znotina.
“We believe it is related to large amounts of cash being carried over the border. We have informed the State Revenue Service and the Bank of Latvia of this. Together we will find a way to resolve the situation,” says Znotina.
She also said the reason was not just because some Latvian residents opened up accounts in financial institutions in Lithuania and frequently traveled there to withdraw money and carry it back to Latvia to hide its true origin.
“It’s not just Lithuania. Nevertheless, just recently we have discussed the increased ATM activity along the Lithuanian border. Even before the closure of the borders multiple private aircraft users were detained for smuggling cash in suitcases from Russia and other CIS countries. Land and marine borders remain largely unprotected,” said Znotina.
She added the previous study, which revealed Latvian residents actively used financial institutions in Lithuania to hide transactions, helped improve cooperation with Lithuanian authorities.
“In the Lithuanian study we found that some Latvian banking clients had moved to Lithuanian payment and e-money institutions. The study contributed to more intensive cooperation with Lithuanian colleagues and development of controlling processes. Looking at the activity in Lithuania, they have started watching over their respective sector very intensely,” said Znotina. (BNN/Business World Magazine)