Latvia's Ministry of Finance published an informative report, backed by the government, proposing to transfer the licensing and supervision of non-bank consumer lenders and financial-services consumer rights and interests protection to Latvijas Banka. The proposed change is intended to create a single, more risk-based supervisory model, reduce administrative burden, and eliminate overlapping controls. Non-bank lenders in Latvia are currently overseen by three bodies, Latvijas Banka, the Consumer Rights Protection Centre (PTAC) and the State Revenue Service, which the report links to parallel inspections and inconsistent requirements. The Ministry points to MONEYVAL’s sixth-round assessment, which recommended more unified supervisory practice and more efficient use of resources, and noted the need to strengthen PTAC’s risk-assessment approach in less material sectors, particularly for anti-money laundering and countering terrorism and proliferation financing (NILLTPFN) risk analysis and data quality. The report says a move to Latvijas Banka would materially reduce annual state fees for firms (nearly fivefold) and remove the licence-issuance payment for new entrants, while existing providers would not need to reapply for a licence and no bank-style prudential requirements are currently planned. The Ministry and stakeholders have reached a conceptual agreement on a phased transition with a transition period running until 1 January 2028. From 2027, Latvijas Banka would carry out supervision using PTAC-developed guidelines, and from 2028 supervision would move fully into Latvijas Banka’s remit, with work ongoing between the central bank and industry representatives to clarify key implementation details.

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