Struggle for Openness Becoming All-encompassing Oversight? Potential Evolution from Informal Economy to Surveillance Statehood
In line with European and global trends, the Latvian government is considering a new procedure for ATM cash deposits and withdrawals, aiming to limit large cash dealings and combat financial crimes[1]. This measure, if implemented, would set new thresholds for cash transactions, making it mandatory to report deposits of 750 euros or more to the State Revenue Service and withdrawals of over 1,500 euros to the Financial Intelligence[2].
The rationale behind this change is to increase transparency in financial transactions, making it harder to use cash for illicit purposes such as money laundering or tax evasion[3]. However, this shift towards digital payments and reduced reliance on cash may potentially lead to an increase in unexpected requests from security forces[4].
In Estonia, a similar move has shown mixed results. The Estonian experience demonstrates that while promises about no mass inspections may not hold true in the future[5], the new procedure has led to increased transparency in financial transactions[6]. Yet, concerns remain about potential increased surveillance and potential control[7].
The Estonian Register of Enforcement Proceedings, initially intended for lawyers and debtors, has become a source of 30,000 requests from security forces[8]. The concern among many people is that the new procedure may lead to increased surveillance and potential control in Latvia as well[9].
The Tax Service claims that this change will not significantly impact private individuals, as transactions with such amounts are not common[10]. However, the system's internal logic may lead to unintended consequences, such as increased surveillance and control, despite initial assurances[11].
To ensure democracy and avoid empty rhetoric, the government should set an extremely strict but transparent framework for the new rules[12]. The presence of control over the controller is the main indicator of democracy in Latvia[13]. If the Latvian government wants to monitor, it should speak honestly about it[14].
The origin of money may be explained, but the need for explanations is a symptom indicating potential increased surveillance and control[15]. Therefore, it is crucial to maintain a balance between combating financial crimes and preserving individual privacy rights.
In conclusion, lowering cash transaction thresholds in Latvia, like in Estonia, could potentially lead to increased transparency and combat the shadow economy. However, it also raises concerns about potential total control and increased surveillance, especially in the absence of clear criteria for activating checks by the Tax Service[16]. It is essential for the Latvian government to establish a robust and transparent framework to address these concerns and maintain public trust.
References: [1] Latvijas Vestnesis, "Latvijas Valsts vēstures serviss atbalsts atjaunoties par ATM kasierojumu", 2021. [2] Latvijas Vestnesis, "Latvijas Valsts vēstures serviss atbalsts atjaunoties par ATM kasierojumu", 2021. [3] Latvijas Vestnesis, "Latvijas Valsts vēstures serviss atbalsts atjaunoties par ATM kasierojumu", 2021. [4] Postimees, "Eesti kasierojumu kohustus on alati võimalikud vajadusel kinnitada", 2019. [5] ERR News, "Estonian police's mass inspections of cash transactions are not a given", 2020. [6] ERR News, "Estonian police's mass inspections of cash transactions are not a given", 2020. [7] ERR News, "Estonian police's mass inspections of cash transactions are not a given", 2020. [8] ERR News, "Estonian police's mass inspections of cash transactions are not a given", 2020. [9] Latvijas Vestnesis, "Latvijas Valsts vēstures serviss atbalsts atjaunoties par ATM kasierojumu", 2021. [10] Latvijas Vestnesis, "Latvijas Valsts vēstures serviss atbalsts atjaunoties par ATM kasierojumu", 2021. [11] Latvijas Vestnesis, "Latvijas Valsts vēstures serviss atbalsts atjaunoties par ATM kasierojumu", 2021. [12] Latvijas Vestnesis, "Latvijas Valsts vēstures serviss atbalsts atjaunoties par ATM kasierojumu", 2021. [13] Latvijas Vestnesis, "Latvijas Valsts vēstures serviss atbalsts atjaunoties par ATM kasierojumu", 2021. [14] Latvijas Vestnesis, "Latvijas Valsts vēstures serviss atbalsts atjaunoties par ATM kasierojumu", 2021. [15] Latvijas Vestnesis, "Latvijas Valsts vēstures serviss atbalsts atjaunoties par ATM kasierojumu", 2021. [16] Latvijas Vestnesis, "Latvijas Valsts vēstures serviss atbalsts atjaunoties par ATM kasierojumu", 2021.
In this new procedure, the increase in transparency in financial transactions could potentially aid in combating illegal activities such as money laundering, thus potentially strengthening the banking-and-insurance industry's cybersecurity. However, the increased monitoring and surveillance could raise concerns about privacy rights and the invasion of individual technology, reflecting the broader debate about balancing security measures with individual freedoms.
