Whistleblowing

What is whistleblowing and what is the purpose of whistleblowing?

Whistleblowing is a way of identifying and preventing a variety of infringements in a timely manner or reporting infringements committed by involving any person. Persons intending to raise alarm have the possibility to report the infringements, which are related to a possible infringement of the interests of the general public.

Regulatory provisions regulating whistleblowing:

• Whistleblowing Law;
• The Financial and Capital Market Commission’s Regulations (No 241) on the Procedure for the Reporting of Actual and Potential Infringements of Regulatory Provisions by a Person and Examining the Report by the Financial and Capital Market Commission of 22.12.2020 (hereinafter – the Regulations No 241).

The Regulations No 241 have been developed to introduce the European Union legal framework in the financial sector for Latvia, and it provides for the possibility for a person to report violations referred to in the Regulations anonymously.

The Financial and Capital Market Commission has established a secure reporting channel. Accordingly, when reporting within the framework of above both regulatory enactments, the identity of the person and the information provided have been protected, including personal data and other personally identifiable information is kept secret (pseudonymised). In examining information submitted, the Financial and Capital Market Commission shall process your personal data. These may include information on person’s identity, contact details, professional data and any additional information that you have decided to share with us. The Financial and Capital Market Commission shall process your personal data in order to handle a whistle-blowers report received and perform the duties in the public interests specified in the Financial and Capital Market Commission’s regulatory provisions. When processing personal data the Financial and Capital Market Commission shall take all information security measures to ensure compliance with applicable regulatory provisions in the field of data protection. For more details on the processing of personal data, please see here.

The Whistleblowing Law provides extensive guarantees for the protection of a person, for example, if the report is passed to the law enforcement authorities or court in accordance with the procedures specified in the Law, but the person has to disclose their identity. To qualify for guarantees specified in the Whistleblowing Law, all the following criteria must be met:

• the report shall be provided by a natural person;
• the person has obtained information about the violation while performing their duties or establishing legal relationships related to the performance of duties;
• a violation already committed or planned harms or may harm the public interests;
• the person considers that the information on the violation is true.

What infringements can be reported?

Any person may report irregularities in the financial sector which are in most cases related to the activities of financial and capital market participants supervised by the Financial and Capital Market Commission. In particular, reports on potential and actual irregularities may be carried out in the following areas:

• the activities of credit institutions;
• anti-money laundering and combating the financing of terrorism and proliferation;
• insurance and reinsurance distribution;
• the activities of alternative investment fund managers;
• investment management services;
• the provision of financial instruments market data reporting services and other irregularities in the financial instruments market;
• the activities of regulated market organiser;
• payment services, etc.

How can a whistleblower’s report be submitted?

The whistleblower’s report may be submitted to the Financial and Capital Market Commission in the following ways.

Electronically:

• by sending to the e-mail address trauksme@fktk.lv;
• in the portal latvija.lv, using the application Submission to the Authority or the official electronic address (the submitted report is equivalent to a document bearing either handwritten signature or secure electronic signature);
• filling in the online form on the portal trauksmescelejs.lv.

In paper form:

• by sending to address: Kungu ielā 1, Riga, LV-1050;
• submitting in person by placing it in a mail box Whistleblowers Reports, located at the security post of the Financial and Capital Market Commission in Riga, Kungu Street 1, on the first floor at the entrance (under video surveillance).

Orally:

• by calling telephone number +371 67 969 169, ensuring the receipt and recording of person’s voice message (special telephone number for the submission of messages);
• in person at Kungu Street 1, Riga. To arrange appointment, please call the phone number +371 67774803 or send a written message to the e-mail address: trauksme@fktk.lv.

The whistleblower’s report can be submitted using the following forms:

• the State Chancellery’s report form (available only in Latvian);
• the form specified in the Regulations (available only in Latvian);
• the form specified in the Regulation No 530 of the Cabinet of Ministers of 19.11.2019 ”Regulations on the standard form for reporting on violations in the area of anti-money laundering and combating terrorism and proliferation financing” (available only in Latvian).

Important!

It is recommended to use a specifically dedicated e-mail address trauksme@fktk.lv, as the message immediately is sent for processing to an appropriate (trained) employee of the Financial and Capital Market Commission. On the other hand, when submitting a message in a free form rather than using the available reporting form, please indicate it as ‘whistleblower’s report’. This notice is important particularly when a report is sent, for example, via portal www.latvija.lv, the central e-mail address of the Financial and Capital Market Commission fktk@fktk.lv or using the postal services.

Contact person for matters related to whistleblowing – Ilze Klievēna, phone number: +371 67774803, e-mail: trauksme@fktk.lv.

Further information on whistleblowing is available via a link from the State Chancellery to the dedicated website on the whistle-blowers https://trauksmescelejs.lv/.