Unconstitutional amendments are proposed in the law on dirty money

By voting for the amendments to the law on dirty money in the first reading and even considering the draft law as a matter of urgency, the deputies have neither gone into nor understood that the draft law is in clear conflict with the fundamental right to property established in the Constitution. Besides, for many MPs, the adoption of the current version threatens to deprive them of their own property, as their reputation can in no way be considered crystal clear, as will be required of all true beneficiaries in the future.

For example, on June 20, 2019, Atis Zakatistovs, Parliamentary Secretary of the Ministry of Finance, who represents the promoter of the bill, was charged with large-scale fraud while in a group of persons. It was debated in the Saeima, the media reported on it. No matter how Zakatistovs' trial ends, if it ever ends, he no longer has an impeccable reputation and never will again. So, do you have to take away his shares in SIA Per Capita?! And not only his, but also his current and former cooperation partners' shares in their companies - for cooperating with Zakatistovs who does not have an impeccable reputation. And there are also a lot of other deputies with a tarnished reputation, moreover, even in the chairmanship of commissions - Artuss Kaimiņš, Mārtiņš Bondars. And the Saeima from time to time allows for administrative punishment of violators of traffic rules. Their reputation can also be questioned. And not everyone has exemplary private lives.

Would it be in the public interest for the Financial Intelligence Unit to deprive them all of their businesses and property? And all the other inhabitants of Latvia who have a real or imaginary stain on their reputation? No! However, such an absurd logic is incorporated in the amendments to the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing currently being submitted to the Saeima. In particular, Section 10 (8).

Anyone running a business can be repressed, just like a kulak during the Soviet-era.

Should Suņu Būda be taken away from Kaimiņš?

There are signs, however, that at least some Members have realized the dangers of the draft law, and a proposal has already been made to exclude this provision. It was submitted by the opposition deputy Viktors Valainis, and it can only be hoped that the position will hear him out. If such a rule enters into force, it can be used as an instrument of political reckoning. For example, at present, the Saeima is unable to decide whether or not to hand over deputy Kaimiņš to prosecution. But other politicians will come and in such a situation will not only hand him over but also ask the Financial Intelligence Unit if Kaimiņš owns something else. Why does he still own the SIA Suņu būda?!

Neatkarīgā has already reported that the bill is being pushed through the Saeima at a wild pace in order to catch up with the required report to the auditors of international lenders - the FATF and Moneyval - on March 1. Although it is of poor quality, it does not comply with the basic principles of normative acts. And there are a number of problems with it. The law grants and expands the right of supervisors to carry out inspections, punish and impose sanctions, including deprivation of property rights. To instruct "to dispose of the relevant shares or stocks providing a significant or controlling interest". Investigators will be encouraged with bonuses to punish and deprive as much as possible.

It will be legalized raiding

Until now, radical changes in the supervision of the financial sector and business have been opposed mainly by lawyers and solicitors whose clients have had their accounts blocked, services denied or funds frozen on the basis of unexplained suspicions. Now they are joined by accountants. They, too, are subject to the law of dirty money, and will also be subject to a rule that will allow their accounting firms to be taken away if something is not properly recorded or the client has reputational difficulties or, God forbid, a disagreement with law enforcement.

Lienīte Caune is a partner and a member of the board of the company JSC CBB konsultāciju birojs, and she openly says: “These amendments threaten the fundamental values ​​of the Latvian state”. Basically, it relates to Article 105 of the Constitution, which guarantees people's right to property. It is now planned to dramatically restrict these fundamental rights, that has also been noted by the Ombudsman's Office.

“This specific norm of the draft law also allows the alienation of capital shares if the subject does not cooperate. Didn't pick up the phone? So you didn't cooperate. This is just raiding!” concludes Lienīte Caune. In her own company, too, it has already been said that it is necessary to separate the real estate owned by the company, because - "no one wants to give it all up to Znotiņa after 24 years of work!".

The law applies to 80% of businesses

It should be reminded that Ilze Znotiņa is the main financial intelligence of the state. A person endowed with almost unlimited power to deprive people of their money, possessions, and lives. Until now, the biggest victims were non-residents, but after the law will be amended, every inhabitant of Latvia, especially a merchant, will also be at risk of being left without anything. The Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing applies to about 80% of businesses, all those who work with documents - accountants, lawyers, banks, real estate traders, debt collection offices, car dealers, building materials dealers, etc. They are all required to report suspicious transactions. And in the new form of the law, one error, incorrect or illegal action of a client or "insufficient exchange of information", however the Financial Intelligence Unit and the State Revenue Service understand it, will suffice to receive a hefty fine or, in the most radical case, lose your business.

If MPs do not understand, they must leave!

For example, accountants are required by Article 37 of the law to keep customer information for five years. For large companies, this is a huge amount of data, server capacity needs to be increased. And what will happen if there is information for four years, but one is missing? "It will go like this. Thank you, you may leave, we are confiscating your shares,” predicts Lienīte Caune. "It looks like a fight against the non-disclosure of the true beneficiaries, but in practice we know that the issue of reputation and information flow will be translated in whichever way it seems to be at the moment to either the controlling authority or, to be more precise, the current controller." Analyzing the content of the draft law and its possible consequences, if it is approved as a matter of urgency with Section 10 (8) in its current wording, the co-owner of the accounting company Lienīte Caune sharply concludes:

"To write something like that, you have to be traitors to the state. If Members do not understand what is written there, they must leave!"

Today, amendments to the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing are being considered at the meeting of the Financial Sector Supervision Subcommittee of the Budget and Finance (Taxation) Committee of the Saeima. MPs are preparing new proposals for the second, final reading. Until then, the preparation of the draft law will continue in the Saeima Defense, Internal Affairs and Corruption Prevention Committee.