The FCMC has rejected the Minister's statement on the entry of Latvia into SWIFT's high-risk countries

The Committee on Financial and Capital Markets (FCMC) has verified information relating to the exchange of payment messages allegedly encumbered by Latvian banks in the SWIFT services network and has not been not obtained information on the inclusion of Latvia in the list of high-risk countries.

It has already been said that SWIFT, the international banking information exchange network, which regulates between banks in different countries, has recognized Latvia as a high risk country. On Tuesday 27 November, members of the Saeima Budget Committee were briefed by Finance Minister Dana Reizniece-Ozola (ZZS).

On November 28, the Commercial Bank of Latvia, FCMC, confirmed that all processes were proceeding in the usual order. In turn, the SWIFT Regional Office informed the Latvian authorities that this organization did not have any information on SWIFT's decisions regarding the creation of lists of high-risk countries.

"It is important to understand before making public announcements known as SWIFT (Society for Global Interbank Financial Telecommunication) .This organization provides banks with the exchange of their communication networks.This process takes place in a few minutes. seconds – the SWIFT system immediately transmits the payment messages to the beneficiary bank SWIFT SWIFT has never performed and does not carry out any AML checks or bank selections in place of banks and does not make payments, This allows banks to exchange orders in a secure and standardized manner for various types of financial transactions, including interbank payments and bank payments.The institutions responsible for overseeing our sector today have confirmed that the exchange of this information in the national and international environment was proceeding smoothly and mani re usual, "said Peters Putnins, the & # 39; instigator of the FCC.

After reviewing the information, FCMC and the other responsible institutions do not have confirmation that a decision would be taken, a message indicating whether the list in which SWIFT would have badessed the Latvian state as a high-risk area. As an organization, SWIFT does not create a list of banks or countries based on certain criteria and does not retain payment reports, explains the FCMC.

As stated in SWIFT information – SWIFT is a neutral organization that provides a messaging service and does not participate in any financial transaction control or monitoring system. As a global service provider, SWIFT does not make any decisions regarding the imposition of restrictions or sanctions, these control issues are the responsibility of the beneficiary countries and their co-legislators.

"I appeal to anyone wishing to publish information likely to undermine the international reputation of our country, or more particularly touching a sector as sensitive as the financial sector and its stable and unhindered operation, to verify each message before The unexplained facts create a false impression on our country, the Latvian banking sector and the work already done to strengthen the international reputation of the Latvian financial sector and to transform the approach of the banking sector, "notes Mr Putnins .

The FCMC indicates that the transmission of payment messages is one of the steps of the interbank settlement. The exchange of messages between banks within the SWIFT network takes place in a few seconds. SWIFT does not keep payment reports in check. Payments on payment orders sent via the SWIFT network are made using payment systems (for example, the Eurosystem's TARGET2 Eurosystem payment system) or through accounts opened by banks among themselves (correspondent accounts). As a provider of financial transaction network services, SWIFT does not realize the potential for legalization of the proceeds of crime, including customer due diligence (CDD), payment orders sent via the SWIFT network. Whether banks choose to use their own solutions, SWIFT services or other technical solutions developed by IT companies, the management of money laundering and terrorist financing risks is the responsibility of the shipper and the bank. recipient of payment orders.

Subsidiary services offered by SWIFT include a number of additional services which, like solutions developed by other organizations and their own banks, allow banks to optimize their operations, including through implementation of regulatory risk management related to money laundering and terrorist financing. Corresponding banks that receive the SWIFT payment messages themselves can perform extensive inspections. SWIFT offers additional tools for an additional fee that can help its customers (banks) to control the AML (to identify and report suspicious transactions to the user of this tool). But it is a different type of software and is not part of the SWIFT telecommunication network.