In 2024, Latvijas Banka conducted a thematic review on ensuring financial inclusion and the availability of payment accounts, during which it evaluated the following aspects:
- the formation of costs for account opening and servicing;
- the procedure for non-initiation and termination of business relationships and communication with customers;
- the procedure for servicing low-risk customers.
The review was conducted in all credit institutions registered in the Republic of Latvia and in branches of credit institutions from European Union Member States located in the Republic of Latvia, which offer payment account services, totalling nine credit institutions and two branches of credit institutions.
Overall, the review did not identify any comprehensive disproportionate requirements and avoidance or unjustified decision-making regarding cooperation with specific customer risk groups. At the same time, individual situations indicate shortcomings in the practical application of requirements, where credit institutions may have been able to apply more proportionate measures for customer risk management, for example, concerning the requirement for a significant connection with Latvia for legal entities, without substantively assessing the reasons for opening an account with a credit institution.
Simultaneously, the review concluded that to ensure effective financial inclusion, measures should not only be taken to strengthen the proportionate application of requirements for the prevention of money laundering and terrorism and proliferation financing, but also in other areas, such as promoting communication with customers and applying a transparent pricing policy.
Observations and conclusions from the review, along with examples of good and undesirable practices, are compiled in these guidelines, which aim to inform financial market participants about Latvijas Banka's expectations of ensuring effective financial inclusion.