EMA comments on 4MLD implementation in Latvia
We set out our position on the implementation of customer due diligence and local point of contact provisions in 4MLD in a letter sent to the Latvian Ministry of Finance on 27 September.
The letter made a number of comments similar to those set out in previous responses to other EEA member states. These included:
- Article 12exemption from CDD for some e-money products: we set out a compelling argument for the retention of this provision. While the exemption does not create vulnerabilities, products issued under this Article benefit, for example, the financially excluded segment of the population;
- Articles 15, 16 and Annex IIthat allow SDD for low-risk products; we emphasised the importance of these provisions for EMIs that rely on the risk-based approach under Article 15 to onboard new customers;
- disproportionality of the local point of contact requirement under Article 45(9), highlighting that someone located at the central office (e.g. compliance officer or MLRO) would be more knowledgeable and better able to engage with the Latvian regulator.
Read full letter here.