In order to ensure uniform and effective implementation of sanctions in Latvia, as well as to implement the most appropriate support measures for Latvian businesses - including training and informative activities - the Financial Intelligence Unit (FIU), as the national competent authority for the implementation of international and national sanctions, initiated a public opinion poll.

A survey conducted at the end of last year on businesses’ awareness and the challenges of sanctions compliance revealed that 79% of businesses are aware of the restrictive measures. Analysing the results by different group of companies, it was found that larger companies - those with more than 20 employees and a turnover of more than €3 million - are more likely to understand the impact of sanctions and are more likely to implement the necessary compliance measures. Similarly, higher awareness and compliance practices are observed in companies registered in Riga.

In the opinion of smaller companies (10 to 19 employees) with a turnover of up to €1 million the necessity to implement specific measures to comply with sanctions is less relevant.

The survey results reveal a growing awareness about sanctions in businesses, but also point to the need for further education, especially among smaller companies, to ensure uniform and effective compliance with sanctions across the business environment.

The survey covered 300 companies from different economic sectors operating in Latvia and employing 10 or more people.

Key findings:

• Impact of sanctions - 45% of companies have experienced the impact of sanctions, especially those with a turnover above €10 million and those already implementing sanctions compliance measures.
• Need for support - 42% of businesses consider the support of public authorities for sanctions compliance to be sufficient, but more than half would like to receive additional support.
• Main challenges - 47% of businesses affected by sanctions experience bureaucratic burdens, 38% face difficulties in verifying partners and 36% are unable to keep up with changes.
• Main challenges - 47% of businesses affected by sanctions experience bureaucratic burdens, 38% face difficulties in verifying partners and 36% are unable to keep up with changes.
• Availability of information - 66% of companies want to be informed immediately about changes to sanctions, preferring free emails.
• Need for training - 69% of companies want to learn how to research customers and counterparties, while 62% consider training in identifying suspicious transactions essential.

Businesses support sanctions, but are not fully convinced of their effectiveness

The survey shows that 88% of companies fully support sanctions against Russia and Belarus. However, when it comes to the effectiveness of the sanctions, companies gave an average score of 5.57 out of 10.

The results of the survey clearly demonstrate the need for active cooperation with businesses in the implementation of sanctions and confirm that it was essential to designate a single competent authority for sanctions implementation in Latvia. This centralised approach allows for more effective coordination of support to businesses, ensuring clarity and a common approach to sanctions compliance.

Given that the private sector plays a key role in sanctions compliance, the FIU's main priority in 2025 as the competent authority is to provide clear guidance, precise explanations and training opportunities for business.

For more information in Latvian language regarding the survey, see here.