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Riga, Latvia: Saeima Committee Approves EU Requirements for Digital Operations and AI Use in Financial Sector

Strategic Insights

— 1 min read

The Saeima Budget and Finance (Tax) Committee in Riga, Latvia has supported a draft law that aims to introduce European Union (EU) requirements for the sustainability of digital operations in the financial market and the use of artificial intelligence. The draft law defines the financial sector participants that will be subject to these requirements, including insurance companies, electronic money institutions, investment brokerage companies, and others supervised by the Bank of Latvia.

Key Takeaways:

  • The draft law requires financial sector participants to maintain digital resilience and use artificial intelligence in a responsible manner.
  • The Bank of Latvia will be responsible for supervising digital resilience requirements and may impose warnings or fines for non-compliance.
  • Financial institutions will have to inform the Bank of Latvia of all significant changes, including circumstances that may negatively affect their future activities.
  • The Bank of Latvia may also apply administrative measures, such as requiring responsible persons to cease their activity or imposing a temporary ban on them.
  • The draft law provides for a five-year statute of limitations for initiating a case against financial institutions.
  • EU requirements for digital operations and AI use will be implemented to ensure a common understanding and uniform regulation in all member states.
  • The draft law defines the following financial sector participants as subject to EU requirements:

+ Insurance companies

+ Electronic money institutions

+ Investment brokerage companies

+ Private pension funds

+ Crypto-asset service providers

+ Other financial market participants supervised by the Bank of Latvia

Statistics:

  • 5 years: The statute of limitations for initiating a case against financial institutions.
  • In areas not regulated by the EU, the Bank of Latvia may determine additional conditions and procedures for implementation.
  • The draft law stipulates that financial institutions will have to inform the Bank of Latvia of all significant changes.

Sources:

  • Bio Business Center. (September 3). Saeima Budget and Finance (Tax) Committee supports for final reading the draft Law on the Resilience of Digital Operations of the Financial Market and the Use of Artificial Intelligence.

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