Latvia: Funding Source Disclosure Dropped for Construction Projects

Latvia has removed the requirement for construction project applicants to disclose their funding sources, a move that has sparked criticism from financial transparency advocates. The change, enacted through amendments to the Construction Law passed in late 2025, eliminates a previous stipulation enforced by Cabinet of Ministers regulations.

The decision, spearheaded by the Union of Greens and Farmers (ZZS) in coalition with Latvia First, Apvienotais Saraksts and Stabilitātei, has raised concerns about potential illicit financial flows and corruption. Proponents of the change argue the previous requirement was disproportionate, given the potential for funding sources to evolve during lengthy construction projects.

“I was extremely surprised when the proof of the origin of the money was canceled in the construction process. I think this is a big step backwards, and I don’t understand why it was done and how anyone could have come up with such an idea,” said Sauka.

On March 19, 2026, the Saeima approved the amendments with 57 votes in favor, coming from ZZS, the “Latvia First” party, “Apvienotais Saraksts” and “Stabilitātei.” Thirty-one deputies from the “Jaunās vienotības” and “Progresīvie” parties voted against the changes.

The amendments as well apply to private individuals undertaking construction projects for their own needs and self-managing the building process, removing the need to disclose funding sources. The move comes as Latvia’s construction sector continues to attract investment, making transparency in funding all the more critical.