Latvia – FCMC Beneficial Owner CDD

Latvia – FCMC Beneficial Owner CDD

On 4 November 2019, LAT FCMC issued explanatory information on the identification of the beneficial owner and the assurance of the conformity of the identified beneficial owner.

  • Taking into account information obtained during supervision and questions received.
  • When using explanatory information, it is essential it is applied in risk-based approach.
  • Explanatory information cannot be applied in the same way to all cases without evaluation because solutions to be used in different risk situations may be different.
  • Essential to use a risk-based approach for identification of BO, which should include detailed requirements for identification and verification of BO in internal legislation.
  • This prevents, for example, the complex ownership and management structure from concealing the BO and the formal BO acting in the interest or control of the third party.
  • Internal laws and regulations should provide for features indicating that BO is acting on behalf of a third party on basis of which the customer's due diligence is initiated.