FCMC has gathered and sent out to banks information on best practices in the identification of beneficiaries

12.09.2019
  • Section:
Introducing a recommendation of Moneyval, namely, to improve the understanding and application of the legislation on the identification and compliance control of the beneficial owner (hereinafter – the BO) to the participants of the financial and capital markets the Financial and Capital Market Commission (FCMC) carried out an examination of internal documentation developed by 15 banks and five branches of Member States' banks operating in the Republic of Latvia and compiled information on the procedures specified by the banks under which they carry out the identification of the BO and verification of compliance of identified beneficiary.

The FCMC has gathered and sent out to the banks information on best practices laid down in the above procedures for the identification of the BO and verification of compliance of identified beneficiary, as well as the areas identified where improvements are required. In addition, an explanation of the application of the laws and regulations of the Republic of Latvia has been prepared, analysing the problems identified in the application of the legislation, performing the identification of the BO and verification of compliance.

In the identification of the BO, it is essential to apply a risk-based approach as part of which the banks are required to develop detailed requirements for the identification of the BO and verification of compliance, thus eliminating the possibility that, for example, the BO is concealed behind the a complex ownership and management structure and the formal BO is acting in the interests or under control of a third party. At the same time, the banks in their internal documentation shall specify the characteristics indicating that the BO is acting for the benefit of a third party, and on the basis of which the customer due diligence is initiated.

Contacts


Address:
Kungu iela 1, Riga, LV-1050
Phone:
6 7774800
E-mail:
Previous sign-in to the secretary:
67 774 801
Data protection:

Follow the news


Subscribe to the news and receive important industry-related information in your e-mail