Credit Institution Law.

This Law determines the legal status of credit institutions, regulates the activities, liability and supervision, as well as determines the rights, obligations and responsibilities of the persons to whom the requirements of this Law apply. In the Republic of Latvia, the right to carry out the activities of a credit institution shall be vested in a credit institution registered in a Member State, branch or branch of a foreign credit institution. In the Republic of Latvia, a credit institution may be established only as a joint-stock company. The Bank of Latvia is entitled to request that a branch of a credit institution registered in another Member State, which has commenced the provision of financial services in the territory of the Republic of Latvia in accordance with the procedures laid down in this Law, provide it with information regarding its activities in the territory of the Republic of Latvia for statistical information and supervisory purposes and information necessary for the recognition of a branch of a credit institution registered in another Member State as a significant branch of a credit institution in the territory of the Republic of Latvia. Credit institutions and persons to whom the requirements of this Law apply shall be obliged to provide the Bank of Latvia, within the time limits specified by it, with all requested information specified in regulatory enactments that is necessary for the performance of the Bank of Latvia's functions. A credit institution is obliged to prepare public reports in order to inform the public about the activities and financial indicators of the credit institution. The Bank of Latvia is entitled to prohibit a credit institution from receiving a planned outsourcing service if: (a) the provisions of this Law have not been complied with; (b) receiving an external service may limit the credit institution's ability to provide financial services, as well as may infringe on the legitimate interests of the credit institution's clients and depositors; (c) the receipt of an external service may limit the ability of the management bodies of a credit institution to perform the duties assigned to them in regulatory enactments, the articles of association of the credit institution or other internal acts of the credit institution; (d) the outsourcing will prevent or limit the Bank of Latvia's ability to perform its functions as prescribed by law; and (e) the outsourcing agreement does not comply with the law and does not provide a clear and true picture of the intended cooperation between the credit institution and the outsourcing provider and the requirements regarding the scope and quality of the outsourcing service. This Law primarily addresses the legal framework governing the delegation of responsibilities and voluntary task execution within the context of regulatory compliance. It emphasizes the need for establishing supervisory examination programs which is aimed at enhancing the effectiveness of oversight. The document outlines several key measures aimed at improving regulatory compliance and oversight efficiency. These include the establishment of a plan for compliance with the law and other applicable regulations, the enhancement of supervisory effectiveness by eliminating redundant oversight requirements, and the implementation of a consistent application of prudential standards across all entities. It also highlights the importance of risk assessment within the consolidation group and the need for timely reporting of relevant information as specified in the law. The implementation plan involves specific timelines and responsibilities assigned to various institutions, including the State Revenue Service and the Financial Supervisory Authority. The document specifies that information must be provided in accordance with established legal frameworks, particularly during tax audits or when compliance issues arise.