The Inspection was performed with an aim to assess one of the elements of the Institutions' AML/CTPF and sanctions risk management ICS, i.e. the process of ML/TPF risk assessment, including, methodology, and to identify good and bad practice examples.
The Inspection was carried out in 17 Institutions – in all credit institutions registered in Latvia and all branches of the EU Member States' credit institutions registered in Latvia, as well as four non-bank institutions which have the most significant influence on the non-banking sector both in terms of their mode of operation and size and ML/TPF and sanctions risk.
Conclusions of the Inspection were based on the analysis of information provided by the Institutions as effective on 1 August 2022, i.e. the Institutions' answers to previously defined questions about the assessment of ML/TPF and sanctions risk, internal regulations of the Institutions, which define the methodology of ML/TPF and sanctions risk assessment, as well as the latest ML/TPF and sanctions risk assessments of the Institutions were assessed (for more information about the scope of the Inspection refer to the Section II of the Report).
As a result of the Inspection examples of good and bad practice that were identified in the practises of Institutions have been determined. Findings of the bad practice examples are based solely on the analysis of the said restricted amount of information, and due to the horizontal character of the Inspection identified findings were not verified with the relevant Institutions where the bad practice examples were found.