EU – Baltic States, Financial Services, Latvia, Legislation
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Friday, 19.04.2024, 23:26
Government committee approves regulations on prevention of money laundering and terrorism financing in non-bank lending sector in Latvia
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According to the Economics Ministry of Latvia, the regulations are
necessary to ensure that consumer lenders and debt collection companies take
effective measures for the prevention of financial crime. The Consumer Rights
Protection Center will be responsible for enforcing the regulations.
The regulations stipulate that non-bank lenders have to adopt internal
risk management control systems, appoint employees to ensure that requirements
on the prevention of financial crime are adhered to, and report the management
on the quality of measures against financial crimes and any possible risks they
may encounter.
According to the regulations, non-bank lenders and debt collection
companies will also have to perform customers' individual risk assessments and
organize customers into different risk category groups.
The Economics Ministry says that the new regulations will increase the
administrative burden for sixty licensed lenders and 31 debt collection
companies in Latvia, as well as for the Consumer Rights Protection Center.
The new regulations are to come into force on January 1 next year.
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