Latvia’s Cabinet has approved draft amendments prepared by the Ministry of Finance and Latvijas Banka to implement Directive (EU) 2024/1619 (CRD6), updating the supervisory framework for credit institutions and investment brokerage firms and aligning national rules with the revised EU requirements. The package would add further requirements for management board and supervisory board members and other officials, and introduce a new administrative measure, a periodic payment, intended to allow Latvijas Banka to react immediately and proportionately to identified breaches. It also clarifies Latvijas Banka’s powers in supervising bank reorganisations and qualifying holdings, reflects EU harmonisation for third-country bank branches including their classification and rules on licensing, minimum regulatory requirements, reporting and supervision, and requires credit institutions to integrate environmental, social and governance risks into their strategies. Separately, amendments to Latvia’s conflict-of-interest regime would allow an institution’s head, following a public official’s request and an assessment of corruption and conflict-of-interest risks, to reduce a two-year restriction period to one year where the official previously took decisions or performed functions related to a specific undertaking.

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