Latvia's Ministry of Finance, together with the Bank of Latvia, has submitted to the Cabinet a package of 13 draft laws to implement a reform that would transfer the registration, licensing and supervision of non-bank consumer lenders and credit intermediaries, as well as financial consumer protection functions now carried out by the Consumer Rights Protection Centre, to the Bank of Latvia. The package is built around amendments to the Consumer Rights Protection Law and would consolidate licensing, registration, supervision, data analysis and consumer protection functions within a single institution. The core changes would also give the Bank of Latvia responsibility for supervising unfair commercial practices and advertising related to services provided by financial market participants. The reform is intended to replace the current split oversight of non-bank consumer lenders across the Bank of Latvia, the Consumer Rights Protection Centre and the State Revenue Service, which can subject the same firms to parallel inspections and differing requirements. Companion amendments would align a broad set of related laws, including those on alternative investment funds, financial instruments, investment management companies, anti-money laundering and sanctions, payments and electronic money, advertising, private pension funds, civil procedure and crowdfunding services. The need for stronger coordination and more efficient use of resources was also identified in a MONEYVAL assessment. The bills provide for a phased transition. The transfer of supervisory functions to the Bank of Latvia would take effect on 1 January 2027, while certain delegation provisions would take effect on 1 January 2028. During the transition, legal continuity would be maintained and licences issued and registrations made by the Consumer Rights Protection Centre would remain valid. The package still faces objections from the Ministry of Economics, the Fintech Latvia Association and some consumer lenders.

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