The Financial and Capital Market Commission (FCMC) is working on changes to the regulations to help and not restrict banks and they should not immediately identify certain companies as high-risk customers, the Chairman of the FCMC Santa Purgaile said at the meeting of the responsible sub-commissions of the Saeima.
At the joint meeting of the Parliamentary Subcommittee on Financial Sector Supervision and the Subcommittee on Information Technology and Innovative Entrepreneurship, support for the admission of Belarusian companies to Latvia was discussed today. Purgaile explained that it is planned to make changes to the rules so that the bank’s customers can be assessed in accordance with its risk assessment system. MP Daniels Pavļuts (AP) asked whether, according to the information provided by the Latvian Investment and Development Agency (LIAA), 12 companies that are ready to move from Belarus to Latvia will have the opportunity to do so and whether the weak link will sometimes turn out to be financial control that is too restrictive for businesses.
Purgaile expressed the belief that this would not be the case, emphasizing the FCMC’s cooperation with credit institutions. Laima Letiņa, a representative of the Financial Industry Association (FNA), positively assessed the co-operation with the FCMC and pointed out that banks would also be interested in more active co-operation with state security authorities in order to receive information in a timely manner. The chairman of the joint sitting, MP Reinis Znotins (JKP) indicated that he would expect a more positive attitude from banks regarding the valuation of companies. Letiņa explained that the performance of the respective inspections is not an initiative of the banks, but it is required by the current regulation, which the banks have to comply with.
The FNA spokeswoman explained that the inspection of the company should not take more than a month. Znotins pointed out that representatives of the Financial Intelligence Service (FID) had been invited to the meeting, but they had not arrived. MEP Gatis Eglīts (JKP) drew attention to the fact that the level of stress in the financial sector is too high, therefore the FID needs to improve both communication and working methods in order for the financial sector to have more opportunities to develop. LIAA head Kaspars Rožkalns gave the deputies a broader overview of the progress towards attracting Belarusian companies.
As reported, the decision to transfer operations to Latvia has been made by 12 Belarusian companies, LETA was informed by the Ministry of Economics. According to the Ministry, these companies represent the information and communication technology industry and other areas of technology, such as “green” energy. Since the political situation in Belarus has changed, the Latvian Investment and Development Agency has mobilized resources to address Belarusian companies about the possibility of relocating to Latvia.
To date, in-depth consultations have been provided to 116 Belarusian companies and individuals. These companies currently employ more than 4,000 people in Belarus. It has already been reported that mass protests against the falsification of the results of the August 9 presidential election and the brutal violence against protesters by the authorities have been going on in Belarus for more than a month.
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