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nid 94032
Jul 16, 2026
msolomon@vixio.com
Latvia
Latvijas Vēstnesis - Latvijas Republikas oficiālais izdevums
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2039 charsLatvia's Central Bank Amends Sanctions Risk Management Control System Requirements
On July 13, 2026, Latvia's Central Bank (Latvijas Banka) published amendments to its March 25, 2024 regulations on sanctions risk management internal control systems. The amendments, published in the official gazette Latvijas Vēstnesis on July 14, 2026, modify requirements for financial institutions operating under Latvia's sanctions framework.
The amendments introduce several substantive changes to sanctions risk management obligations. Institutions must now implement procedures for screening clients, beneficial owners, authorized persons, shareholders, and client transactions against sanctions lists, with a requirement to demonstrate that chosen solutions provide effective sanctions risk management. The regulations clarify that group-level institutions must implement group-wide sanctions risk management policies and procedures. Enhanced information technology requirements now mandate functional specifications and regular effectiveness testing aligned with each institution's sanctions risk profile.
The amendments establish differentiated review timelines: most institutions must update their sanctions risk assessments at least every three years, while credit institutions, licensed payment institutions, licensed electronic money institutions, investment broker firms, and crypto-asset service providers must review assessments at least annually. Senior management responsibility is strengthened, requiring institutions to ensure functional independence of sanctions risk management systems from core business functions and to appoint dedicated personnel with appropriate authority and information access. Institutions must notify Latvia's Central Bank within 30 days of appointing or replacing their sanctions risk management officer, providing specified personal and contact details.
Institutions that previously submitted incomplete information to Latvia's Central Bank regarding their appointed sanctions risk management officer have until September 1, 2026 to achieve full compliance with disclosure requirements.
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1940 charsLatvia Publishes Amendments to Sanctions Risk Management Control System Requirements
On July 14, 2026, Latvia published amendments to its March 25, 2024 regulations on "Requirements for the Establishment and Control of an Internal Control System for Sanctions Risk Management". The amendments modify requirements for financial institutions operating under Latvia's sanctions framework.
The amendments introduce several substantive changes to sanctions risk management obligations which include the following:
Institutions must now implement procedures for screening clients, beneficial owners, authorised persons, shareholders, and client transactions against sanctions lists, with a requirement to demonstrate that chosen solutions provide effective sanctions risk management.
Group-level institutions must implement group-wide sanctions risk management policies and procedures.
Enhanced information technology requirements now mandate functional specifications and regular effectiveness testing aligned with each institution's sanctions risk profile.
The amendments establish differentiated review timelines: most institutions must update their sanctions risk assessments at least every three years however credit institutions, licensed payment institutions, licensed electronic money institutions, investment broker firms, and crypto-asset service providers must review assessments at least annually.
Institutions must ensure functional independence of sanctions risk management systems from core business functions and to appoint dedicated personnel with appropriate authority and information access.
Institutions must notify Latvia's Central Bank within 30 days of appointing or replacing their sanctions risk management officer, providing specified personal and contact details. Institutions that previously submitted incomplete information to Latvia's Central Bank regarding their appointed sanctions risk management officer have until September 1, 2026 to achieve full compliance with disclosure requirements.