Adjudicator Justice Faqir Khokhar upheld the ban, saying there was "overwhelming" evidence against Latif, but waived the fine as his career was almost over, Pakistan Cricket Board lawyer Taffazul Rizvi told reporters in Lahore.
Latif, who had shown tremendous early promise as a cricketer but failed to make an impact at international level, played five one-day internationals and 13 T20Is, the last of which was against the West Indies in Abu Dhabi in September 2016.
The scandal surfaced during the second edition of the Pakistan Super League in February last year when Latif was playing for Islamabad United.
Latif, 32, was charged with orchestrating a deal with a bookie that would see his fellow opener Sharjeel Khan deliberately playing two dot balls – deliveries off which no run is scored – in the opening match against Peshawar Zalmi in Dubai.
Spot-fixing involves determining the outcome of a specific part of a match rather than the overall result, and is therefore harder to detect than match-fixing.
Another former opener Nasir Jamshed – alleged to have played a role as coordinator in the PSL fixing deal – was banned for one year for not cooperating with the inquiry.
The decision against another international player, Shahzaib Hasan, was reserved and will be announced on Saturday.