Latvia passes law on 26.8 million euros in closed bank accounts

The Latvian Saeima has passed amendments establishing a clear procedure for handling funds remaining in closed financial institution accounts. Currently, approximately 26.8 million euros are held across more than 39,000 closed accounts in Latvian credit institutions.

The new regulation specifically targets cases where a financial institution has terminated a relationship with a client due to increased cooperation risks and subsequently closed the account while leaving a balance. Under the new rules, clients will have five years to claim these funds. If the funds are not claimed within this period, the right to claim will be lost, and the money will become property of the state, to be managed by the State Revenue Service.

Justice Minister Edvards Smiltēns noted that the law aims to resolve the legal ambiguity surrounding funds left in accounts after relationships have ended. The regulation will not apply to active or simply long-unused accounts, nor will it affect Latvian residents. Additionally, the rules exclude frozen funds, assets seized in criminal proceedings, or those subject to civil enforcement.