Beneficial owners in several sectors will be required to have a crystal-clear reputation; if they lack one, they will be forced to divest their property.

Beneficial owners of credit institutions, payment service providers, insurance companies, accounting firms, real estate agencies, tax consultants, and other entities subject to the law will not be permitted to be individuals with questionable reputations, with the government to determine the evaluation procedures and criteria.

If the reputation of the beneficial owners of companies in these sectors is not impeccable, they will be forced to divest their property. This is stipulated in the amendments to the Law on the Prevention of Money Laundering and Terrorist and Proliferation Financing, prepared by the Ministry of Finance and reviewed and approved in the first reading by the Saeima Defence, Internal Affairs and Corruption Prevention Committee.

Entrepreneurs and legal experts point to significant restrictions on property rights and another attempt at over-regulation, which could once again lead to significant ambiguity in the future.