According to new rules, if a bank or other financial institution has terminated its relationship with a client due to increased risks of cooperation and has closed their account, the client will have five years to claim the remaining money in that account. After this period, the right to claim will cease, and the unclaimed funds will be transferred to the state. The new rules do not apply to residents of Latvia, as well as to frozen funds, money seized in criminal proceedings, or funds subject to enforcement in civil proceedings. The Ministry of Justice emphasizes that the amendments do not affect active bank accounts or accounts that have simply not been used for a long time. This specifically concerns accounts that have already been closed by financial institutions due to increased risks of cooperation with the client, if there are payable funds remaining in them. Until now, such funds could remain in a legally uncertain position for a long time. The new procedure establishes a specific timeframe for their reclamation and provides protection for residents of Latvia. The State Revenue Service will manage the funds that have transitioned to the state. According to the Latvian Financial Industry Association, at the beginning of 2025, there were 39,136 such accounts in Latvian banks. They held a total of approximately 26.8 million euros. The Ministry of Justice notes that this does not mean the entire amount will transition to the state: clients will be able to claim their money within the legally established timeframe. For accounts closed before the amendments come into effect, a transitional period is provided. Their owners will be given six months from the date the new rules come into force to assert their rights to the remaining funds.
