Latvijas Banka, in cooperation with the Finance Latvia Association, has developed the "Guidelines for monitoring, managing, and mitigating the risk of financial fraud" aimed at enhancing the financial sector's ability to effectively identify and mitigate the risks of financial fraud.
These guidelines aim to promote a unified, risk-based approach to be adopted by credit institutions, payment institutions, electronic money institutions, and their branches operating in Latvia.
The guidelines provide recommendations on the requirements for the internal management of fraud risk, the efficiency of the complaint review process, and the procedure for rejecting and suspending payment orders, the assessment of payment authorisation and gross negligence, as well as the requirements for information availability and exchange.
By implementing the actions and measures recommended in the guidelines, payment service providers will strengthen the financial sector's ability to protect customers' interests and ensure clear and effective processes for reviewing complaints and mitigating the risk.
Guidelines are regularly updated, taking into account the challenges identified in practice, examples of good practice, and changes in the financial sector's regulatory framework. That allows for a unified approach to managing the risks of financial fraud, in line with current trends and needs.