Latif went on television on Monday night to claim that Sunday's game was "fixed" after India fought back from the brink to win by five wickets and level the five-match series 2-2.
"Rashid's allegation was unpatriotic and shameful. We are considering taking legal action against him," PCB chairman Shaharyar Khan said ahead of Wednesday's deciding match at the Gaddafi stadium.
Latif, regarded as the original whistle-blower in the match-fixing scandal which hit cricket in 2000, laughed away the threat from the PCB.
"I am willing to face any court action," Latif said.
"I have dealt with such threats from cricket administrators in the past and I am ready to do so again."
Latif walked out of Pakistan's tour of Zimbabwe in 1995 in protest at what he said was then captain Salim Malik's nexus with bookmakers.
Malik was later banned for life from the game alongwith two other Test captains, the late Hansie Cronje of South Africa and Mohammad Azharuddin of India, when the scandal snowballed into a major crisis.
Meanwhile, officials of the International Cricket Council's anti-corruption unit (ACU) monitoring the series rubbished Latif's charges.
"It is a clean series, no worries about it," said ACU inspectors Nuruddin Khawaja of Pakistan and Martin Hawkins of England.
"It has been a well-contested series and very exciting to watch. Fans could not have asked for more."
India won the first match at Karachi in the highest-scoring One-dayer in history, Pakistan took the next two at Rawalpindi and Peshawar, while India drew level in the fourth in Lahore on Sunday.
PCB chief executive Ramiz Raja, himself a former Test captain, said Latif's remarks were unfortunate.
"Cricket has been played in good spirit and comments like Latif's are an attempt to dilute the intensity and sincerity of the players," Raja said.
ACU inspectors monitor every cricket international played anywhere in the world, installing survelliance cameras outside the players' dressing rooms and at the team's hotels to keep the bookmakers away from the cricketers.