A unified approach of banks to all customers is not possible, because different business levels face different levels of risk, Zlata Elksniņa-Zaščirinska, a member of the Board of the Foreign Investors’ Council in Latvia (FICIL), said on Wednesday in the Financial Industry Association’s discussion “Compliance Culture – the Basis for Sustainable Development”.
“A customer compliance culture does not emerge immediately, it takes five, ten or more years. It must also be possible for someone to slip a leg, but everyone will learn from it. It must also be understood that each customer needs to develop a different approach and balance it,” he explained. Elksniņa-Zaščirinska.
She noted that one approach will be local capital companies, another – construction companies, another – foreign investors or “FinTech” companies.
Elksniņa-Zaščirinska also said that Latvia has a double risk profile – one is related to history, which cannot be changed and can only work with its consequences, while the other risk profile is the future, and it is most directly related to the shadow economy.
“This is one of the aspects that discourages investment in Latvia. If a foreign investor is faced with demanding bribes and tax evasion, he will probably not know, but will turn and go to another country. So we should all understand what and how to do with corruption. and the shadow economy, “said Elksniņa-Zaščirinska.
A member of the FICIL board added that foreign investors are also disturbed by the feeling of impunity, and it depends on all the stages involved – investigations, prosecutor’s offices, courts. Until a uniform link is reached at all these stages, the culture of compliance will falter.
“The concept of ‘know your customer’ is also understandable to some, but completely new to some. A common understanding of this principle will help to learn and standardize the requirements of customers,” added Elksniņa-Zaščirinska.
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