Latvia: fintech & payments regulation

Regulated

Latvia fintech regulation: CBK oversight under AML/CRD frameworks

Lead regulator:: Latvijas Banka (Bank of Latvia)
Key law:: Law on the Prevention of Money Laundering and Terrorist Financing; EU Payment Services Directive (PSD2)
Last updated:: 2026-07-12

The Latvian fintech and payments sector is regulated primarily by Latvijas Banka (the central bank) and the Financial and Capital Market Commission (FCMC). The regulatory framework is anchored in EU directives, particularly PSD2 for payment services and AML/CFT laws for compliance. Entities providing payment services or electronic money must obtain authorization from Latvijas Banka.

Recent regulatory activity includes the issuance of Regulation No 241 by Latvijas Banka, which establishes strict criteria and notification procedures for acquiring or increasing qualifying holdings in financial institutions. This underscores a focus on ownership transparency and governance within the financial sector.

Who regulates

Latvijas Banka
Primary supervisor for payment institutions, e-money institutions, and prudential oversight of financial holdings.
^[1]
Financial and Capital Market Commission
Supervision of capital markets and certain financial services; co-regulator in the broader fintech ecosystem.

Core laws & rules

Regulation No 241 (2025)
Establishes criteria, calculation methods, and notification procedures for acquiring or increasing qualifying holdings in financial institutions, defining concerted action and significant influence.
^[1]

Licensing & registration

Payment Institution / E-Money Institution
Authorization required from Latvijas Banka to provide payment services or issue electronic money in compliance with EU PSD2.

Restrictions & warnings

Acquisition or increase of qualifying holdings in financial institutions requires prior notification and approval based on criteria defined in Regulation No 241.
^[1]

Direction of travel

Regulatory focus remains on strengthening governance, ownership transparency, and AML/CFT compliance within the financial sector.
^[1]

Sources

Latvijas Banka Regulation No 241 on Acquiring or Increasing a Qualifying Holding in Financial Institutions · 2025-10-01

Email alerts for Latvia updates

New circulars, rules and guidance — a digest in your inbox, same day.

This guide is compiled automatically from 1 primary-source documents published by Latvia's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.