1. What kind of profiles are we talking about?
Every customer of Latvian banks this year will get to fill in the questionnaire, which will be a list of questions, allowing to define whether it is a politically exposed person and should fall under special monitoring by regulatory authorities and intelligence agencies.
Questionnaires can be "paper", and in the form of a survey in the online banks.
2. What kind of questions will there be?
Each Bank can independently come up with the questions. As Lsm writes.lv, Bank DNB, which has already started the questionnaire asking asking about the following:
- What is the origin of your cash?
- What are the average amounts of income into the account per month?
- What are the purpose of its use?
- What are the revenues?
- If the salary — enter the company.
- If a dividend is similar.
- If you receive money for rental property — enter the address of this property.
- If you receive income as self-employed — specify occupation.
- Do you use a Bank account for transactions of third parties?
- Are you a politically exposed person?
3. What happens if I do not answer or answer wrong?
According to representatives of banks, the consequences will be the same as if the client during the communication with the Bank pointed out any false information. That is, the Bank may restrict the customer, not to provide particular services to apply higher lending rates, etc. IN DNB, for example, decided to limit some of the services available through the Internet Bank. Other banks can come up with their "sanctions", or to keep them secret, preferring to "scare" the stubborn personally, not advertising it.
4. Can banks ask clarifying questions after completing the questionnaire?
Yes, if you want to. Therefore, to specify "don't want to answer" and hope that the system is "swallow", most likely, will not work.
5. When will the survey?
Bank DNB has already begun. Swedbank is to start from June 1 to interview all new customers and from 1 December — all of its existing customers. While other banks did not specify the timing.
6. Why should banks even ask these questions?
This requires a new version of the law "On legalization of income obtained by criminal means and financing of terrorism", which is a further stage of the bill we described. Formally, for banks to meet additional requirements in the procedure "Know your client", including the need to know about who is a politically exposed person and who is not. Common sense dictates that a list of such persons to the banks must show intelligence services and Supervisory authorities, but in fact from Latvians will require themselves to be attributed (or not attributed) to them.
7. What it's for politically exposed persons?
it is written in the law, politically exposed persons are considered to be senior officials, military, judges, politicians, members of state boards and companies, etc., and their spouses (including civil), parents, grandparents, grandchildren-granddaughter, brothers-sisters. Are mentioned separately and persons who have with the above is easily provable business "or other close" relationship.
In fact, the concept of "politically important persons" include not only representatives of the highest Executive, legislative and judicial branches, as well as top officials and managers of state and municipal enterprises, but also their entire circle of relatives and friends. Previously, the Latvian Association of commercial banks suggested that in the list of politically exposed persons can be up to a quarter of all residents of Latvia.
8. Do I have to pay for the survey?
Right — only your time spent. But the state does not compensate banks drawing up of questionnaires, so the burden of payment falls on the shoulders or their shareholders or customers. The latter may raise tariffs or prices on these or other services, right, of course, not declaring that they are associated with the survey. Banks need to design and print questionnaires, to realize them technically in banks, train their support, etc. Costs are not known, but surveyed and data collected from hundreds of thousands of people data can't be free.
9. What banks received the information?
She will remain with the banks. Lending institutions promise not to share it with colleagues (so, if a person has multiple accounts in different banks, he will have to fill in several questionnaires — the number of banks), these data are subject to all rules and regulations adopted to confidential client information.
10. Will the state of this data?
Automatically and specifically but not them. But in Latvia is a lack of state structures that may apply to banks with a particular query and get the data you need. So filling the questionnaire, we must assume that anything said banks will sooner or later be at the disposal of the state. However, in this sense, questioning is no different from any other cases, communication with banks.
11. What will happen to me if I plead politically exposed person?
Banks promise that with them nothing will change. Will the attitude of the state structures is a question for him.
12. The status of this same person for life? Whether the repeated questioning?
The law assumes that the man (and his entourage) is a politically exposed person still occupies an important position, and 12 months after its abandonment. This means that some of the clients of the banks who pleaded politically exposed persons — may be asked again to take part in a survey after some time. Unlikely again to fill out the questionnaire asks all in a row. It is expensive.
13. This Latvian know-how?
The Association of commercial banks argues that no similar system operates in many countries in Europe and around the world.