Credit Register is a by the Bank of Latvia maintained information system for collecting, accumulating and storage of the data on borrowers and borrower guarantors, their obligations and performance thereof. The volume and terms of the submitted data are stipulated in the Regulations for the Credit Register (Regulations No 93 approved by the Bank of Latvia on September 13, 2013).
The following data on borrower and borrower's guarantor, their obligations and performance thereof are collected and accumulated in the Credit Register:
Borrower's obligations are obligations arising under a loan agreement, leasing agreement, including a financial leasing agreement, leasing loan agreement, lease purchase agreement, lease repurchase agreement, purchase guarantee agreement, factoring agreement, credit institution's overdraft agreement, or any other agreement on the conclusion of a risk transaction, as well as a trust agreement whereby the participant grants a loan to a borrower in its own name on behalf of a third party.
The borrower guarantor's obligations mean borrower guarantor's obligations arising under a guarantee agreement or an agreement on the issuance of a guarantee whereby the borrower's guarantor assumes liability for the borrower's obligations.
Debtor information – data on delayed payments of the borrower and borrower's guarantor stipulated by the loan agreement or guarantee agreement, and the settlement thereof.
The participants of the Credit Register, as well as the Financial and Capital Market Commission and the Bank of Latvia are entitled to receive information from the Credit Register according to the procedure defined by the respective legislative acts.
Any person is entitled to receive any Credit Register data regarding this person, except the data concerning the bank’s authorised person who provides the Bank of Latvia with the above data, as well as type of recording of their obligations, free of charge.
In case the borrower or borrower’s guarantor consider that Credit Register data regarding the borrower or borrower’s guarantor are not correct or complete they are entitled to submit a complaint to the Bank according to the procedure for review of Customer recommendation and complaints developed by the Bank.
More information on the Credit Register can be found on the Bank of Latvia’s web page: www.bank.lvBank of Latvia’s contact information: Address: K. Valdemara street 2A, Riga, LV-1050
Considering that agreement between the Government of the United States of America and the Government of the Republic of Latvia to Improve International Tax Compliance and to Implement FATCA signed on June 27, 2014 has entered into force, the regulations of the Foreign Account Tax Compliance Act of the United States of America (FATCA) became applicable to Latvian financial institutions.
The purpose of FATCA is to prevent U.S. residents from tax avoidance through using deposits abroad.
OP Corporate Bank plc Latvia branch has undertaken obligations to comply with FATCA regulations and pursuant to the above-mentioned intergovernmental agreement FATCA status of OP Corporate Bank plc Latvia branch is “reporting financial institution”.
Annually, OP Corporate Bank plc Latvia branch has to disclose to the State Revenue Service of the Republic of Latvia information about assets that belong directly or indirectly to U.S. residents.
OP Corporate Bank plc Latvia branch advises clients to examine thoroughly their tax residence and their beneficiaries tax residence and immediately inform OP bank plc Latvia branch about all changes in prior supplied information that may influence compliance of the client’s or beneficiary’s status with U.S. resident’s status.
OP Corporate Bank plc Latvia branch recommends clients at the bank's request to submit immediatelyany requested information or documents, confirming client’s residence and client’s beneficiary’s residence.
What is PSD2?
Payment Services Directive 2 (PSD2) issued by the European Banking Authorities (EBA) will open banks’ doors to Third Party Providers. This Directive came into force in January 2016 and the related technical requirements were finalized in February 2017. PSD2 enforced laws will be valid in the EU countries in January 2018, after which, there will be a transition period of one year for implementing the requirements.
After the PSD2 comes into force banks will no longer have exclusive rights to provide account information or payment services to their customers. According to the directive, bank customers can use Third Party Service Providers or competitors for daily transactions, for example, to make a payment or to check their account balance. Furthermore, it will be possible to link accounts of several different banks to one service, which so far was not possible for most customers.
The PSD2 directive will create two new types of Service Providers in the financial industry – providers of payment services and providers of account information services. For example, e-commerce businesses who currently do not have banking licence, will in the future be able to debit payments directly from the customer’s bank account. In addition, a bank or any other company, which is registered as an account information service provider, will be able to combine customer’s account information in several banks in a single view. Combining of account views will provide opportunities to banks’ existing internet applications.
By opening bank interfaces, the European Banking Authority (EBA) aims to intensify the operability of the European internal market. Increased competition will considerably accelerate innovations in the finance sector and provide customers with a wider and better choice of services and products. The aim of the EBA is also to improve the security of payments and provide customers with a more comprehensive protection with regard to purchases in the e-environment. Furthermore, opening up of interfaces will decrease payment costs.
With the PSD2 deadline approaching, banks in Europe are already getting ready for the new competition. Several banks have already opened their interfaces to Third Parties while others promote interface innovations by organising brainstorming events to developers. In Great Britain, the competition and market supervision authority is promoting fast transition to use open interfaces in order to increase competitiveness of British banks. In addition to the interfaces covered by PSD2, banks are opening their interfaces even more widely, to achieve additional business benefits that are enabled by this change.
Although the new competition created by the EBA initiative, will ruin traditional way of earning for banks and change payments landscape, it is also seen as an opportunity. The PSD2 interfaces could also be used for development of additional services together with Third Party Providers, whereas account information can be used for developing better and more personalized services.
The changes brought about by the PSD2 will further accelerate the already ongoing changes in the financial sector. New technologies and innovations as well as the constantly growing expectations of customers force the traditional financial sector players to develop new digital business models. Banking business and the role of the banks as a provider of daily banking services to customers will change significantly with the PSD2. The current approach, where banks themselves, develop all of their products, may become out of date after the PSD2 implementation.