The Financial and Capital Market Commission (FCMC), in cooperation with the Data State Inspectorate (DSI) and the Finance Latvia Association (FLA), has developed recommendations for the processing of personal data in the field of prevention of money laundering and terrorism and proliferation financing (hereinafter – AML/CTF) and compliance with sanctions. Latvia is the first country in the European Union where the competent authorities have developed such explanatory information for the financial sector market participants.
The recommendations are included as a separate chapter in the FCMC Recommendations No 169 of 21 December 2021 “Recommendations for the Establishment of the Internal Control System for Anti-Money Laundering and Countering Terrorism and Proliferation Financing and Sanctions Risk Management, and for Customer Due Diligence”. These recommendations serve as a practical guide for financial institutions in conducting customer due diligence and improving internal control systems for the prevention of financial crime.
The drafting of the recommendations started with the survey of challenges faced by financial institutions in their day-to-day work. In the recommendations, the competent authorities have prepared clarifications and possible solutions enabling financial institutions to comply with the requirements of both the AML/CTF Law and the General Data Protection Regulation (the Data Regulation).
The recommendations include examples to make the document practically applicable and understandable.
The recommendations explain and provide examples in the following areas:
- the basic principles and legal bases for the processing of personal data in the context of the AML/CTF Law, the Law on International Sanctions and National Sanctions of the Republic of Latvia and other related legal acts and the Data Regulation;
- processing of special categories of personal data;
- processing of personal data relating to criminal convictions and offences;
- ensuring compliance with the internal processes set out in the Data Regulation;
- enforcement of the rights of data subjects;
- processing of personal data in cooperation with other subjects of the AML/CTF Law (at the national and international level) etc.
A consolidated version of the recommendations is available here: https://www.fktk.lv/en/law/general/fcmc-guidelines-and-recommendations/recommendations-for-the-establishment-of-the-internal-control-system-for-anti-money-laundering-and-countering-terrorism-and-proliferation-financing-and-sanctions-risk-management-and-for-customer-due-diligence/.
For further information:
Dace Jansone
Head of the FCMC’s Communications Division
telephone: 67774808
e-mail: