This bachelor's thesis analyses the anti-money laundering and counter-terrorist financing laws in Latvia and Finland with a focus on their compliance with European Union standards and international recommendations provided by FATF. The aim of this bachelor thesis is to provide recommendations for improving AML/CFT practices in Latvia by comparing the national and external legal requirements of both countries. The study emphasises the importance of AML/CFT regulations for the protection of the financial sector in the context of growing technological advances and increasing crime risks. The study methodologically includes a careful analysis of six European Union AML/CFT directives, two regulations and the relevant AML/CFT laws of Latvia and Finland. The results of the study emphasise the importance of historical and economic factors for the success of AML/CFT measures, therefore, it is proposed to improve Latvia's AML/CFT system based on Finnish best practices.