ADMINISTRATIVE LIABILITY FOR MINOR OFFENSES
Under the amended Law on International and National Sanctions of the Republic of Latvia, individuals and businesses can now be held administratively liable for:
- Purchasing, selling, or transporting sanctioned goods across Latvia's borders.
- Providing intermediary services, technical assistance, or other services linked to sanctioned goods.
- Performing any other prohibited activities involving these items.
This applies when the total value of the goods or services involved is below 10,000 EUR.
Administrative penalty proceedings will be conducted by the State Revenue Service (VID). Fines include:
- Up to 2,000 fine units* (equivalent to 10,000 EUR) for individuals.
- Between 2,000 and 6,000 fine units (10,000–30,000 EUR) for legal entities.
*One fine unit equals 5 EUR under the Law on Administrative Liability, Article 16.
CRIMINAL LIABILITY FOR SERIOUS VIOLATIONS
Amendments to Section 84 of the Criminal Law and Section 23.¹ of the Law On the Procedures for the Coming into Force and Application of the Criminal Law introduce criminal responsibility for:
- Violating sanctions imposed by the UN, EU, other international bodies, or Latvia.
- Engaging in prohibited transactions involving sanctioned goods or services when their value equals or exceeds 10,000 EUR.
- Specifically, criminal liability applies to substantial breaches, including those involving strategic goods, firearms and parts, ammunition, and military-purpose items or technology.
The law also makes it clear that criminal prosecution is triggered when the value of the goods or related services reaches 10,000 EUR or more. The legislative changes also ensure Latvia's compliance with Directive (EU) 2024/1226, which sets out uniform rules across the European Union for the criminalization of sanctions violations. The directive aims to ensure penalties are effective, proportionate, and dissuasive across member states.
STREAMLINED REPORTING TO THE AUTHORITIES
All reports on suspected violations or attempted circumvention of sanctions must now be directed to a single institution - the Financial Intelligence Unit (FID) of Latvia. This change simplifies procedures and enhances coordination between enforcement bodies.
FID has updated its guidelines on how to submit suspicious transaction reports and when to refrain from executing certain operations. These guidelines are available in Latvian on the FID official website.
Author: Lonija Grīnfelde, Marketing Specialist
