Latvijas Banka has updated the Guidelines on the Establishment of the Internal Control System for Anti-Money Laundering and Countering Terrorism and Proliferation Financing and Sanctions Risk Management, and on Customer Due Diligence. The information included in the Guidelines has been updated in line with the regulatory framework. Additionally, the sanctions section has been clarified, considering the change of the competent authorities, and new examples relevant to the current situation have been added to the Guidelines.
The Guidelines include a new section that provides explanations and summarises best practice examples on how credit institutions and financial institutions should identify and manage risks through cooperation with other credit institutions or financial institutions (respondents), and by establishing and maintaining correspondent banking relationships. The Guidelines have been expanded to include a section that provides foreign exchange companies with specific explanations about the adjustment of the process of customer due diligence to their business model. A new subsection on how credit institutions and financial institutions can effectively assess and manage risks that can be specific to customers whose transactions involve crypto-assets has also been drafted.
The Guidelines are intended to serve as a practical guide to help credit institutions and financial institutions provide safe and accessible financial services. The Guidelines are aimed at developing a common understanding of the application of regulatory requirements in order to facilitate the prevention of financial crime and the adoption of a risk-based approach in both the credit institution sector and the financial sector as a whole. The Guidelines provide credit institutions and financial institutions with detailed explanations and practical examples that can help them improve internal control systems and conduct customer due diligence appropriate to the risk presented.
To enhance a common and risk-based approach to the provision of financial services, the Guidelines are updated regularly to align with the needs identified in practice and the changes in the regulatory framework.
The Guidelines are available here: Vadlīnijas noziedzīgi iegūtu līdzekļu legalizācijas un terorisma un proliferācijas finansēšanas novēršanas un sankciju riska pārvaldīšanas iekšējās kontroles sistēmas izveidei un klientu izpētei (The Guidelines on the Establishment of the Internal Control System for Anti-Money Laundering and Countering Terrorism and Proliferation Financing and Sanctions Risk Management, and on Customer Due Diligence).