Procedures by which a Financial Institution Applies the Due Diligence Procedures to Financial Accounts and Provides Financial Account Information to the State Revenue Service

Issued pursuant to
Section 64, Section 97, Paragraph one, Section 99,
Paragraph one, Section 100,
Paragraph five of the law On Taxes and Fees

1. General Provisions

1. This Regulation prescribes:

1.1. the procedures for publishing the list of the countries and territories participating in the automatic exchange of financial account information (hereinafter - the participating jurisdiction) and the date of determining the category of accounts;

1.2. the procedures by which the financial institutions referred to in Section 71, Paragraph one of the law On Taxes and Fees (hereinafter - the Law) (hereinafter - the financial institutions) shall apply the due diligence procedures to financial accounts to identify reportable accounts;

1.3. the procedures by which financial institutions shall provide information to the State Revenue Service for forwarding to the competent authority of the participating jurisdiction in accordance with Section 100 of the Law.

[9 December 2025]

2. The State Revenue Service is the competent authority for ensuring the exchange of information within the scope of this Regulation.

3. The State Revenue Service shall ensure the protection of data to be received and forwarded to the competent authorities of the participating jurisdiction in accordance with the laws and regulations laying down the protection of information in relation to personal data processing and circulation of such data.

4. According to the procedures laid down in this Regulation and provisions of the agreement entered into by the Republic of Latvia or the European Union with the relevant country the State Revenue Service shall automatically (without prior request) provide to the competent authorities of the participating jurisdiction the financial account information which is indicated in Section 100, Paragraph one of the Law and which has been received from the financial institution in accordance with Section 100 of the Law.

5. If the financial institution (except for a trust) is a resident for tax purposes (hereinafter - the tax resident) in two or more participating jurisdictions, the financial institution shall apply the provisions for reporting or due diligence of such participating jurisdiction in which the financial institution maintains a financial account or accounts. If the trust is a financial institution (regardless of whether it is a tax resident in the participating jurisdiction), the trust shall be regarded as subjected to the legal framework of the relevant participating jurisdiction in relation to the automatic exchange of financial account information if one or several managers of the trust (authorised persons) are tax residents in the relevant participating jurisdiction, unless the trust provides the information specified in Section 100, Paragraph one of the Law to a tax administration institution of another participating jurisdiction because the trust is a tax resident in this other participating jurisdiction. However, if the financial institution (except for a trust) has no residence for tax purposes (for example, because it is deemed financially transparent or because it is located in a country without income tax), it shall be regarded as subjected to the legal framework of the relevant participating jurisdiction in relation to automatic exchange of financial account information if at least one of the following conditions exists:

5.1. it has been incorporated (organised) in accordance with legal acts of the participating jurisdiction;

5.2. the place of its management (including the place of effective management) is located in the participating jurisdiction;

5.3. financial supervision of the participating jurisdiction applies thereto.

6. The financial institution is entitled to apply the provisions of due diligence referred to in Chapters 2, 3, 4, 5, 6, and 7 of this Regulation (except for the norms regarding reporting undocumented accounts to the State Revenue Service) also to financial accounts the holders or beneficial owners of which during the implementation of due diligence are not regarded as persons on whom the information referred to in Section 100, Paragraph one of the Law must be provided.

6.¹ The list of participating jurisdictions prepared by the Ministry of Finance shall be published in the official gazette Latvijas Vēstnesis and the updated list shall be applied from 1 January of the year following its publication. The list shall indicate also the participating jurisdictions to the residents of which the financial institution is entitled to not apply due diligence procedures, except for the conditions referred to in Sub-paragraphs 46.1 and 51.1 of this Regulation, and to not provide the information referred to in Section 100, Paragraph one of the law On Taxes and Fees to the State Revenue Service.

[9 December 2025]

6.² In respect of the countries which are added to the list of participating jurisdictions and for the tax residents of which the financial institution has the obligation to provide information to the State Revenue Service in accordance with Section 100 of the Law, the day before applying the updated list of participating jurisdictions shall be deemed the date of determining the category of accounts.

[9 December 2025]

2. General Due Diligence Provisions

7. A financial account is regarded as reportable from the date on which the financial account is identified as a reportable account in accordance with the procedures referred to in this Regulation.

[22 June 2021]

8. A financial account should be regarded as such which is maintained by a financial institution in the following cases:

8.1. a custodial account is regarded as an account maintained by the financial institution which is a holder of the assets in the account (including the financial institution which holds the assets upon assignment or for the benefit of another person);

8.2. a depository account is regarded as an account maintained by the financial institution which is obliged to make payments with regard to the account (except for an agent of the financial institution (regardless of whether such agent is a financial institution));

8.3. in relation to any equity or debt interest in the financial institution which constitutes the financial account it is regarded that the account is maintained by such financial institution;

8.4. in relation to a cash value insurance contract or annuity contract it is regarded that the account is maintained by the financial institution which is obligated to make payments with respect to the contract.

9. The balance (value) of the financial account is determined on the last day of the calendar year or on the last day of another relevant reporting period. If the balance (value) of the financial account must be determined on the last day of the calendar year, the financial institution shall determine the balance (value) of the relevant financial account on the last day of such reporting year which ends with this calendar year or in such calendar year.

10. The financial institution shall apply the due diligence provisions, taking into account the category of the financial account. Depending on the date of determining their category and ownership status the financial accounts shall be divided into the following categories:

10.1. a preexisting individual account. Depending on the amount of assets recorded therein such accounts shall be divided into the following sub-categories:

10.1.1. a lower value account - an account with an aggregate balance or value not exceeding, on the date of determining the category of accounts, the amount which, according to the reference rate of euro published by the European Central Bank, is equivalent in euros and is equal to 1 000 000 US dollars;

10.1.2. a high value account - an account the aggregate balance or value of which, on the date of determining the category of accounts or on 31 December of any subsequent year, exceeds the amount which, according to the reference rate of euro published by the European Central Bank, is equivalent in euros and is equal to 1 000 000 US dollars;

10.2. a preexisting entity account;

10.3. a new individual account;

10.4. a new entity account.

[9 December 2025]

11. The financial institution is entitled to:

11.1. apply to the preexisting lower value individual accounts the due diligence provisions, which have been established for the preexisting high value individual accounts;

11.2. apply to preexisting accounts the due diligence provisions, which have been established for new accounts, by retaining the rights of the financial institution to concurrently also apply the due diligence provisions which have been established for preexisting accounts.

12. Any of the following documents is regarded as documentary evidence which must be obtained by the financial institution in the cases referred to in this Regulation:

12.1. a certificate of residence which has been issued by a subject of Latvia or a foreign subject governed by public law (competent State or local government authority) on its taxpayer;

12.2. regarding an individual - a personal identification document which has been issued by a subject of Latvia or a foreign subject governed by public law (competent State or local government authority);

12.3. regarding an entity - a document which has been issued by a subject governed by public law (competent State or local government authority) and which contains the following information:

12.3.1. name of the entity;

12.3.2. actual address of the principal office of the entity or legal address in the country in which the entity is a resident for tax purposes according to the information declared in the financial institution, or the country in which the entity is incorporated or organised;

12.4. any audited financial statement, a credit report provided by third persons, a bankruptcy (insolvency) filing, or a report of a securities regulator.

13. The legal address of such financial institution with which the entity holds an account, and also a post office box or an address which is used only for sending correspondence, unless such address is the only address used by the entity and it is indicated in incorporation documents as the registered office (legal address) of the entity shall not be deemed the actual address of the principal office of the entity in the case referred to in Sub-paragraph 12.3.2 of this Regulation.

14. For the establishment of the type and form of the commercial activity of entities in relation to preexisting accounts, the financial institution is entitled to use a standardised sectoral code system classification which is determined in the financial institution within the scope of its commercial activity according to the customer identification and know your customer procedures approved in accordance with the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing or for the fulfilment of the requirements of other laws and regulations (except for the field of taxes) and which has been implemented by the financial institution before the classification of the relevant preexisting account, unless the financial institution knows or has a reason to know that such classification is incorrect or unreliable.

[9 December 2025]

15. The fact that the financial institution, in applying this Regulation, has established the tax residence of the account holder or its beneficial owner in order to ascertain the reportable financial accounts shall not in any way restrict the rights of the financial institution to determine the status of the customer of the financial institution as a tax resident for the purposes of taxes (other mandatory payments) to be paid or deducted by the financial institution.

16. In applying Section 82, Paragraph two of the Law, an entity shall be deemed equivalent to a partnership or a limited liability partnership if it is not treated as a taxpayer in the participating jurisdiction in accordance with the tax legal acts of such participating jurisdiction. However, in order to avoid double reporting, taking into account the extensive scope of the definition of the beneficial owner in case of a trust, a trust which is a passive non-financial entity may not be regarded as an equivalent entity.

17. The financial institution may not rely on a self-certification of a customer (hereinafter - the self-certification) if the financial institution knows or has a reason to know that the self-certification is incorrect or unreliable, including in the following cases:

17.1. the self-certification is incomplete with respect to the information indicated therein;

17.2. the self-certification contains information which is inconsistent with the customer's claim as to its status;

17.3. the financial institution has information on another account of the customer which is inconsistent with the customer's claim.

[29 October 2019]

17.¹ The financial institution may not rely on documentary evidence if it knows or has a reason to know that the documentary evidence is incorrect or unreliable, including in the following cases:

17.¹ 1. the documentary evidence lacks sufficient information to determine its evident affiliation to the account holder;

17.¹ 2. the documentary evidence contains information that conflicts with the customer's claim regarding its status;

17.¹ 3. the financial institution has information on another account of the customer that conflicts with the customer's claim;

17.¹ 4. the information contained in documentary evidence is not sufficient to determine the status of tax residence of the account holder.

[29 October 2019]

17.² If an outsourced service provider examines and stores self-certifications, there are grounds to assume that the financial institution knows the information related to self-certifications which is at the disposal of the service provider.

[29 October 2019]

18. If the financial institution has discovered change in circumstances with regard to a new individual account or any account of an entity, indicating that the self-certification or documentary evidence submitted previously is incorrect or unreliable, the financial institution is entitled to treat the account holder as the tax resident of the relevant country according to the previously submitted self-certification and documentary evidence until one of the following deadlines (depending on which sets in earlier):

18.1. until the day when 90 days have passed since the financial institution has discovered the relevant change in circumstances;

18.2. until the day when a new self-certification has been obtained;

18.3. until the day when the financial institution has confirmed the conformity of the previously provided self-certification with the information which is maintained for the fulfilment of the requirements of laws and regulations or customer servicing, including information which has been collected by the financial institution pursuant to the customer identification and know your customer procedures approved in accordance with the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing.

[9 December 2025]

18.¹ The following shall be treated as change in circumstances:

18.¹ 1. changes as a result of which additional information is obtained on the status of a person or the case where the obtained additional information conflicts the existing information on the status of the person;

18.¹ 2. changes or additional information associated with the account of the customer (including changes in information on the account holder);

18.¹ 3. changes or additional information in relation to another account which is associated with the account in accordance with the provisions for the aggregation and converting of the balance of accounts referred to in Sub-paragraphs 58.1, 58.2, and 58.3 of this Regulation if such changes or additional information in relation to the associated account affects the status of the account holder.

[29 October 2019]

19. If the financial institution is not able, in the case referred to in Paragraph 18 of this Regulation, to obtain a new self-certification or a confirmation for the veracity (true nature) of the previously submitted self-certification within 90 days from discovering the relevant change in circumstances, the financial institution shall treat the account holder as the tax resident of the relevant country according to the self-certification previously provided by the account holder and as the tax resident of the relevant country according to the discovered change in circumstances pointing towards the indicia of tax residence referred to in this Regulation.

19.¹ The financial institution shall store information on the measures taken and evidence used while applying due diligence procedures at least for a period of five years from the moment when the financial institution has provided information to the State Revenue Service on the reportable account to which the stored information applies.

[29 October 2019]

19.² If the participating jurisdiction provides a service which allows to confirm the identity and tax residence of the account holder or beneficial owner electronically and free of charge, the financial institution may use such a service.

[9 December 2025]

3. Due Diligence Provisions for Preexisting Individual Accounts

3.1. Due Diligence General Provisions for Preexisting Individual Accounts

[9 December 2025]

20. Any preexisting individual account which has been identified as a reportable account in accordance with this Regulation shall be recognised as a reportable account also for the whole subsequent period until the account holder ceases to be a reportable person in accordance with the Law and this Regulation.

21. The financial institution shall complete due diligence procedures within 12 months from the date of determining the category of accounts for preexisting high value individual accounts and within 24 months from the date of determining the category of accounts for preexisting lower value individual accounts.

[9 December 2025]

3.1.¹ Due Diligence Provisions for Preexisting Lower Value Individual Accounts

[9 December 2025]

22. If the current residence address of the account holder is indicated in the information systems of the financial institution (which is confirmed by documentary evidence), when determining whether the account holder is a reportable person, the financial institution is entitled to treat the account holder as a tax resident of such country in which the address of such person is located. If there is a change in circumstances after ascertaining of which the financial institution knows of or has a reason to know that the previously submitted self-certification or documentary evidence is incorrect or unreliable, the financial institution shall, until the final day of the relevant calendar year or other relevant reporting period, or also within 90 days after the abovementioned change in circumstances has been discovered, obtain a new self-certification and new documentary evidence from the account holder in order to determine the residence(s) of the account holder for tax purposes. If the financial institution is not able to obtain a new self-certification or new documentary evidence within the time limit referred to in this Paragraph, it shall apply the provisions referred to in Paragraphs 23, 24, 25, 26, 27, and 28 of this Regulation.

22.¹ The address which is the most recent residence address and which has been registered by the reporting financial institution in respect of the account holder shall be regarded as the current residence address of the account holder. The mailing address used for communication with the customer where the postal item has been returned undeliverable-as-addressed (other than due to an error) shall not be regarded as the current residence address.

[29 October 2019]

23. If the financial institution does not rely on the information referred to in Paragraph 22 of this Regulation or chooses not to apply Paragraph 22 of this Regulation, the financial institution shall review the electronically searchable data stored in its information systems on the existence of the following indicia:

23.1. a reference to the status of the account holder as a tax resident of another participating jurisdiction;

23.2. the current mailing address or residence address of the account holder (including a post office box) in the participating jurisdiction (except for the address of the service provider (for example, asset manager, consultant, accountant) of the account holder in information systems);

23.3. the account holder has one or several telephone numbers in the participating jurisdiction, but none in the Republic of Latvia;

23.4. there is a standing instruction for regular transfer of funds to an account in the participating jurisdiction, except for the transfer instructions from a depository account;

23.5. currently effective powers of attorney or signatory authority granted to a person with an address in the participating jurisdiction;

23.6. the only address notified by the account holder for communication is the mailing address in the participating jurisdiction for receipt upon request (in-care-of, hold mail).

24. If none of the indicia referred to in Paragraph 23 of this Regulation are discovered in the search referred to in Paragraph 23 of this Regulation (hereinafter - the electronic search), the financial institution shall not take any further actions until a change in circumstances is discovered that results in one or more of these indicia being associated with the account or the account becomes a high value account.

25. If any of the indicia referred to in Sub-paragraph 23.1, 23.2, 23.3, 23.4, or 23.5 of this Regulation are discovered in the electronic search or if there is a change in circumstances that results in one or more of the abovementioned indicia being associated with the financial account, the financial institution shall treat the account holder as the tax resident of each such country for which an indicium has been identified (except for the cases referred to in Paragraphs 27 and 28 of this Regulation).

[29 October 2019]

26. If the indicium referred to in Sub-paragraph 23.6 of this Regulation is discovered in the electronic search and no other address and none of the indicia referred to in Sub-paragraph 23.1, 23.2, 23.3, 23.4, or 23.5 of this Regulation are identified for the account holder, the financial institution shall, in the order most appropriate for the circumstances, apply the paper record search in accordance with Paragraph 30 of this Regulation or perform targeted actions to obtain from the account holder a self-certification or documentary evidence to establish the residence(s) of such account holder for tax purposes. If none of the abovementioned indicia are discovered in the paper record search and the financial institution has not been able to obtain the self-certification or documentary evidence within 90 days, the financial institution shall report such account to the State Revenue Service as an undocumented account.

27. Regardless of whether any of the indicia referred to in Sub-paragraph 23.2, 23.3, or 23.4 of this Regulation are discovered, the financial institution is entitled not to treat the account holder as a tax resident of the relevant participating jurisdiction if the financial institution obtains or has previously reviewed and maintains the following in its information systems:

27.1. the self-certification of the account holder on belonging only to the status of a tax resident of another participating jurisdiction or foreign country to which any of the indicia discovered and referred to in Sub-paragraph 23.2, 23.3, or 23.4 of this Regulation are not attributable;

27.2. the relevant documentary evidence.

28. Regardless of whether the indicium referred to in Sub-paragraph 23.5 of this Regulation is discovered, the financial institution is entitled not to treat the account holder as a tax resident of the relevant participating jurisdiction if the financial institution obtains or has previously examined and is storing in its information systems a self-certification of the account holder on belonging only to the status of a tax resident of another participating jurisdiction or foreign country to which the indicium established and referred to in Sub-paragraph 23.5 of this Regulations is not attributable, or the relevant documentary evidence.

3.2. Due Diligence Provisions for Preexisting High Value Individual Accounts

29. The financial institution shall review the searchable data to be stored electronically in information systems of the financial institution in accordance with Paragraph 23 of this Regulation.

30. If information systems of the financial institution do not contain fields for the inclusion of all the information referred to in Paragraph 31 of this Regulation or if the abovementioned information is not indicated in the relevant fields, the financial institution shall perform paper record search reviewing the master file of an existing customer of the financial institution and, insofar as such information has not been included in the master file of the existing customer, reviewing also the following documents obtained within the last five years, which are associated with the financial account, for any indicia referred to in Paragraph 23 of this Regulation:

30.1. the most recent documentary evidence collected with respect to the account;

30.2. the most recent financial account opening contract or documentation associated with it;

30.3. the most recent documentation collected by the financial institution pursuant to the customer identification and know your customer procedures approved in accordance with the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing;

30.4. any valid powers of attorney or signature authority forms (sample forms, cards);

30.5. any standing orders on regular transfer of funds to an account in the participating jurisdiction, except for transfers from a deposit account.

[9 December 2025]

31. The financial institution does not have the obligation to perform the paper record search in accordance with the procedures laid down in Paragraph 30 of this Regulation if the searchable information to be stored electronically in information systems of the financial institution contains the following information:

31.1. information on belonging of the account holder to the status of a tax resident of any country;

31.2. the current residence or mailing address of the account holder in the customer file;

31.3. the current telephone number of the account holder in the customer file (if any);

31.4. regarding financial accounts which are not depository accounts - a standing instruction on regular transfer of funds to another account, including an account in another branch of the financial institution or in another financial institution;

31.5. information that the customer uses the mailing address with a note on receipt upon request (in-care-of, hold mail);

31.6. information on any powers of attorney or signatory authority in relation to the financial account.

32. In addition to the electronic search and paper record search referred to in Paragraphs 29 and 30 of this Regulation, the financial institution shall evaluate the information on and knowledge of the account holder which has been obtained by the relationship manager whose duties include permanent keeping of contact with the account holder (hereinafter - the relationship manager). The financial institution shall treat the relevant account as a reportable account (including taking into account the requirements referred to in Paragraph 58 of this Regulation) if, according to the procedures laid down in the internal procedures of the financial institution, the relationship manager indicates towards his or her knowledge of the account holder as a reportable person.

33. If, in applying Paragraphs 29 and 30 of this Regulation, the indicia referred to in Paragraph 23 of this Regulation are not discovered and the financial account has not been identified as a reportable account in accordance with Paragraph 32 of this Regulation, then further actions are not necessary until there is a change in circumstances that results in one or more of the indicia being associated with the account.

34. If, in applying Paragraphs 29, 30, and 32 of this Regulation, any of the indicia referred to in Sub-paragraph 23.1, 23.2, 23.3, 23.4, or 23.5 of this Regulation are discovered or in the future there is a change in circumstances that results in one or more of the abovementioned indicia being associated with the financial account, the financial institution shall treat the relevant account as a reportable account in relation to each participating jurisdiction for which the indicium has been identified (except when any of the exceptions referred to in Paragraph 27 or 28 of this Regulation are applied to the financial account).

[29 October 2019]

35. If, in applying Paragraphs 29, 30, and 32 of this Regulation, the indicium referred to in Sub-paragraph 23.6 of this Regulation is discovered and no other address or indicium referred to in Sub-paragraph 23.1, 23.2, 23.3, 23.4, or 23.5 of this Regulation is discovered, the financial institution shall obtain a self-certification from the account holder or the relevant documentary evidence to establish the residence(s) of such account holder for tax purposes. If the financial institution is not able to obtain such self-certification or documentary evidence, it shall report the account to the State Revenue Service as an undocumented account.

36. If a preexisting individual account is not a high value account on the day when the category of accounts is determined, but becomes a high value account as of the last day of any subsequent calendar year, the financial institution shall apply the provisions referred to in Sub-chapter 3.2 of this Regulation within the calendar year following the year in which the account becomes a high value account. If such financial account is identified as a reportable account under due diligence, the financial institution shall report the information referred to in Section 100, Paragraph one of the Law on the financial account with respect to the year in which it has been identified as a reportable account, and subsequent years until the account holder ceases to be a reportable person in accordance with the Law and this Regulation.

37. If the financial institution has applied the provisions referred to in Sub-chapter 3.2 of this Regulation to a high value account, the financial institution shall not repeatedly apply Paragraphs 29 and 30 of this Regulation in any of the subsequent years (except for the case of an undocumented account). Sub-chapter 3.2 of this Regulation shall be applied to undocumented accounts until such account ceases to be undocumented.

[29 October 2019]

37.¹ The financial institution shall apply the relevant procedures, ensuring that the relationship manager once a year approves that the status of account holders under his or her responsibility conforms to the information on the status of the account holder at the disposal of the financial institution.

[29 October 2019]

38. If there is a change in circumstances that results in any of the indicia referred to in Paragraph 23 of this Regulations being associated with the account, the financial institution shall treat the account holder as a tax resident of each such country for which the indicium has been identified (except for the cases referred to in Paragraphs 27 and 28 of this Regulation).

[29 October 2019]

39. The financial institution shall apply the relevant procedures, ensuring that the relationship manager purposefully carries out activities in order to, on the basis of the information at his or her disposal and his or her actual knowledge, identify any change in circumstances of the account and document such information and knowledge.

4. Due Diligence Provisions for New Individual Accounts

40. Upon opening an account, the financial institution shall obtain a self-certification from the customer that allows the financial institution to determine the residence(s) of the account holder for tax purposes. The financial institution shall confirm the reasonableness of such self-certification based on the information obtained by the financial institution in connection with the opening of the account, including any documentation collected by the financial institution pursuant to the customer identification and know your customer procedures approved in accordance with the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing.

[9 December 2025]

41. If the account holder is indicated as a tax resident of the participating jurisdiction in the self-certification of the customer, the financial institution shall treat the financial account as a reportable account.

42. The self-certification of the customer may be part of the financial account opening documentation of the financial institution. The taxpayer number (in conformity with the exceptions referred to in Section 100 of the Law) and the date of birth of the account holder shall be indicated, inter alia, in the self-certification of the customer.

43. If there is a change in circumstances with respect to a new individual account in result of which the financial institution knows or has a reason to know that the self-certification provided is incorrect or unreliable, the financial institution may not rely on such self-certification and shall obtain a new self-certification which specifies the residence(s) of the account holder for tax purposes. The financial institution shall review it in accordance with Paragraph 40 of this Regulation.

5. Due Diligence Provisions for Preexisting Entity Accounts

44. The financial institution is entitled to not apply these provisions to a preexisting entity account the aggregate balance or value of which on the day of determining the category of accounts does not exceed the amount which, according to the reference rate of euro published by the European Central Bank, is equivalent in euros and is equal to 250 000 US dollars, until the moment when the aggregate balance or value of the account exceeds the abovementioned amount on 31 December of any subsequent year.

45. The financial institution shall determine whether the account holder is one or more entities for which a report must be provided in accordance with Section 100 of the Law, according to the following procedures:

45.1. review the information which is kept for the fulfilment of the requirements of laws and regulations or customer servicing, including information which has been collected by the financial institution pursuant to the customer identification and know your customer procedures approved in accordance with the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing, in order to determine whether the information shows that the account holder is a tax resident of the participating jurisdiction. For this purpose, the financial institution shall treat the place of incorporation or organisation in the participating jurisdiction or address (legal address, actual address of the principal office, or address for the receipt of correspondence) in the participating jurisdiction as the information indicating that the account holder is a resident in the participating jurisdiction;

45.2. if the information obtained in accordance with the procedures referred to in Sub-paragraph 45.1 of this Regulation shows that the account holder is a tax resident in the participating jurisdiction, the financial institution shall treat the relevant account as a reportable account, except when it obtains a self-certification from the account holder that the account holder is not a reportable person or, on the basis of the information at the disposal of the financial institution or the information maintained by the subject governed by public law or a regulated market operator and available to the public, determines that the account holder is not a reportable person.

[9 December 2025]

46. The financial institution shall determine whether the entity is a passive non-financial entity with one or more beneficial owners who are reportable persons in accordance with Section 100 of the Law according to the following procedures:

46.1. determine whether the account holder is a passive non-financial entity by obtaining a self-certification from the account holder for the determination of the abovementioned status, except when the financial institution has information at its disposal or there is information maintained by the subject governed by public law or a regulated market operator and available to the public on the basis of which the financial institution may determine that the account holder is an active non-financial entity or a financial institution (except for the financial institution referred to in Section 68, Paragraph one, Clause 2 of the Law which is not a financial institution of the participating jurisdiction);

46.2. determine the beneficial owners of the account holder. For this purpose, the financial institution is entitled to rely on the information which has been obtained during the application of the customer identification and know your customer procedures approved in accordance with the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing;

46.3. determine whether the beneficial owner of a passive non-financial entity is a reportable person. It shall be determined on the basis of:

46.3.1. the information obtained during the application of the customer identification and know your customer procedures approved in accordance with the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing if the aggregate balance or value of the account of the relevant entity does not exceed the amount which, according to the reference rate of euro published by the European Central Bank, is equivalent in euros and is equal to 1 000 000 US dollars; or

46.3.2. a self-certification from the account holder or beneficial owner with a notation on the belonging of the beneficial owner to the status of a tax resident of the participating jurisdiction or another country;

46.3.3. the information referred to in Sub-paragraph 46.3.1 of this Regulation if the information referred to in Sub-paragraph 46.3.2 of this Regulation cannot be obtained. If the information referred to in Sub-paragraph 46.3.1 of this Regulation is not available to the financial institution and it cannot obtain the information referred to in Sub-paragraph 46.3.2 of this Regulation, no further action is required until there is a change in circumstances that results in one or more indicia being associated with the beneficial owner of the respective account;

46.4. if the information obtained in accordance with the procedures referred to in Sub-paragraphs 46.1, 46.2, and 46.3 of this Regulation shows that the account holder is a passive non-financial entity with one or several beneficial owners who are tax residents in the participating jurisdiction, the financial institution shall treat the respective account as a reportable account.

[29 October 2019; 9 December 2025]

47. The financial institution shall perform due diligence for a preexisting entity account with an aggregate balance or value which, on the day of determining the category of accounts, exceeds the amount that according to the reference rate of euro published by the European Central Bank is equivalent in euros and is equal to 250 000 US dollars, by 31 December of the second subsequent calendar year counting from the year in which the category of accounts was determined.

[3 January 2017]

48. The financial institution shall perform due diligence for a preexisting entity account with the aggregate balance or value which on the day of determining the category of accounts does not exceed the amount that according to the reference rate of euro published by the European Central Bank is equivalent in euros and is equal to 250 000 US dollars, however, exceeds the abovementioned amount by 31 December of the subsequent year, in the calendar year following the year in which the aggregate balance or value of the account exceeds the abovementioned amount.

49. If the financial institution identifies a change in circumstances with respect to a preexisting entity account and therefore knows or has a reason to know that the original self-certification is incorrect or unreliable, the financial institution shall re-determine the status of the account through the following activities:

49.1. in order to determine whether the account holder is a reportable person, the financial institution shall obtain a new self-certification or a reasonable explanation or documentary evidence from a taxpayer supporting the reasonableness of the submitted self-certification or documentation and shall retain their copies or make a notation on the existence of such explanation and documentation. If the financial institution fails to obtain the abovementioned information, it shall treat the account holder as a reportable person with respect to each identified participating jurisdiction;

49.2. in order to determine whether the account holder is a financial institution, an active non-financial entity or a passive non-financial entity, the financial institution shall obtain additional documentation or, where necessary, self-certification. If the financial institution fails to obtain additional documentation or self-certification, it shall treat the account holder as a passive non-financial entity;

49.3. in order to determine whether the beneficial owner of a passive non-financial entity is a reportable person, the financial institution shall obtain a new self-certification or a reasonable explanation and documentary evidence from a taxpayer supporting the reasonableness of the submitted self-certification or documentation and shall retain their copies or make a notation on the existence of such explanation and documentation. If the financial institution fails to obtain a new self-certification or confirm the reasonableness of the previously submitted self-certification or documentation, the financial institution is entitled to rely on the indicia referred to in Paragraph 23 of this Regulation which are at the disposal of the financial institution.

[29 October 2019]

49.¹ The procedures referred to in Paragraph 49 of this Regulation shall be applied until the latest of the following time limits:

49.¹ 1. until the day when 90 days have passed since the financial institution has discovered the relevant change in circumstances;

49.¹ 2. until the last day of the respective calendar year or another respective reporting period.

[29 October 2019]

6. Due Diligence Provisions for New Entity Accounts

50. The financial institution shall determine whether a new financial account of an entity is held by one or more reportable persons in accordance with the following procedures:

50.1. obtain a self-certification that allows the financial institution to determine the residence(s) of the account holder for tax purposes. The financial institution shall confirm the reasonableness of such self-certification based on the information obtained by the financial institution in connection with the opening of the account, including any documentation collected by the financial institution pursuant to the customer identification and know your customer procedures approved in accordance with the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing. If the entity certifies that it has no residence for tax purposes, the financial institution shall recognise the actual address of the principal office of the account holder as the residence of the account holder;

50.2. if the self-certification indicates that the account holder is a tax resident of the participating jurisdiction, the financial institution shall treat the account as a reportable account unless it reasonably determines, based on information in its possession or information maintained by the subject governed by public law or a regulated market operator and publicly available, that the account holder is not a reportable person with respect to the participating jurisdiction indicated in the self-certification.

[9 December 2025]

51. With respect to an account holder of a new entity account (including an entity that is a reportable person), the financial institution shall determine whether the account holder is a passive non-financial entity with one or more beneficial owners who are reportable persons. Such determinations shall be made in the order most appropriate under the particular circumstances of the case with regard to the following activities:

51.1. determine whether the account holder is a passive non-financial entity by relying on a self-certification from the account holder to establish its status, unless the financial institution has information in its possession (including information maintained by the subject governed by public law or a regulated market organiser and publicly available) on the basis of which the financial institution can determine that the account holder is an active non-financial entity or a financial institution (except for the financial institution referred to in Section 68, Paragraph one, Clause 2 of the Law which is not a financial institution of the participating jurisdiction);

51.2. determine the beneficial owners of the account holder. For this purpose, the financial institution is entitled to rely on the information which has been collected during the application of the customer identification and know your customer procedures approved in accordance with the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing. If the financial institution is not required to apply the abovementioned procedures, it shall apply substantially similar procedures to determine the beneficial owner of the account holder;

51.3. determine whether the beneficial owner of a passive non-financial entity is a reportable person. For this purpose, the financial institution is entitled to rely on a self-certification from the account holder or such beneficial owner on the residence of the beneficial owner for tax purposes.

[9 December 2025]

52. The self-certification of the customer or beneficial owner referred to in this Chapter may be part of the financial account opening documentation of the financial institution.

52.¹ If the financial institution identifies a change in circumstances with respect to a new entity account and therefore knows or has a reason to know that the original self-certification or other documentation in relation to the account is incorrect or unreliable, the financial institution shall re-establish the status of the account in accordance with Chapter 6 of this Regulation.

[29 October 2019]

7. Special Due Diligence Provision for Insurance and Annuity Contracts, the Aggregation and Converting of the Balance of Accounts

53. When implementing the due diligence provisions referred to in Chapters 2, 3, 4, 5, and 6 of this Regulation, the financial institution shall additionally apply the special provisions referred to in this Chapter.

54. The financial institution may presume that an individual beneficiary (other than the owner) of a cash value insurance contract or an annuity contract receiving a death benefit is not a reportable person, and it may treat such financial account as a non-reportable account unless the reporting financial institution has actual knowledge or a reason to know that the beneficiary is a reportable person. The financial institution has a reason to know that a beneficiary of a cash value insurance contract or annuity contract is a reportable person if the information collected by the reporting financial institution and associated with the beneficiary contains the indicia referred to in Sub-chapter 3.1.¹ of this Regulation. If the financial institution has actual knowledge or a reason to know that the beneficiary is a reportable person, the reporting financial institution must comply with the provisions included in Sub-chapter 3.1.¹ of this Regulation.

[9 December 2025]

55. The financial institution may treat a financial account that is an interest of a member in a group cash value insurance contract or annuity contract as a financial account that is not a reportable account until the date on which an amount is payable to an employee (certificate holder) or beneficiary, if the financial account that is the interest of a member in a group cash value insurance contract or annuity contract meets the following requirements:

55.1. the group cash value insurance contract or a group annuity contract has been issued to the employer and covers at least 25 employees or certificate holders;

55.2. the employee (certificate holder) has the right to receive any contract value related to their interests and to name beneficiaries for the benefit payable upon of death of the employee;

55.3. the aggregate amount payable to the employee (certificate holder) or beneficiary does not exceed the amount which, according to the reference rate of euro published by the European Central Bank, is equivalent in euros and is equal to 1 000 000 US dollars.

56. A group cash value insurance contract is a cash value insurance contract that provides coverage for persons who are affiliated through an employer, trade association, labour union, or other association or group, and charge a premium for each member of the group (or member of a class within the group) that is determined without regard to the individual health characteristics other than age, gender, and smoking habits of the member (or class of members) of the group.

57. A group annuity contract is an annuity contract under which the obligees are persons who are affiliated through an employer, trade association, labour union, or other association or group.

58. The financial institution shall comply with the following provisions for the aggregation and currency translation of the account balance:

58.1. in order to determine the aggregate balance or value of financial individual accounts, the financial institution shall aggregate all the financial accounts maintained by it and the financial accounts held by entities related to such financial institution only to the extent that the information systems for the recording of accounts of such financial institution link the financial accounts by such data elements as the customer number or taxpayer registration number, and allows to aggregate the account balances or values. When applying the aggregation requirements referred to in this Sub-paragraph, the balance (value) of the individual account in joint property (joint holding) will be inseparably attributed to the balance (value) belonging to each joint owner (joint holder) of such financial account;

58.2. in order to determine whether the financial account held by an individual is a high value account, the financial institution shall aggregate the balances of all such accounts in relation to which the relationship manager has ascertained (or he or she had to ascertain), according to the procedures laid down in internal procedures of the financial institution, that they directly or indirectly belong to the same individual or have been opened in the interests or for the benefit of the same individual (except when the individual who opened the account or is acting with it is doing it upon assignment of another individual);

58.3. in order to determine the aggregate balance or value of financial accounts held by an entity, the financial institution shall take into account all financial accounts of the entity maintained by the financial institution or the entity related to such financial institution only to the extent that the information systems for the recording of accounts of such financial institution link the financial accounts by such data elements as the customer number or taxpayer registration number, and allows for the aggregation of the balances or values of accounts. When applying the aggregation requirements referred to in this Sub-paragraph, the balance (value) of the entity account in joint property (joint holding) will be inseparably attributed to the balance (value) belonging to each joint owner (joint holder) of such financial account;

58.4. in order to determine the balance (value) of accounts, all amounts of the balance of financial accounts which are not expressed in euros shall be recalculated in the cases referred to in Paragraphs 10, 44, 46, 47, 48, and 55 of this Regulation according to the reference rate of euros published by the European Central Bank on the day of recording the balance (value) of the account.

59. If the financial institution establishes a negative balance (value) as a result of aggregation of balances (values) of financial accounts, then, in applying this Regulation, the abovementioned negative balance shall be equalled to zero.

8. Procedures for Providing, Examining, and Forwarding Information

60. Information between the State Revenue Service and the financial institutions shall be exchanged electronically, using the solution provided by the State Revenue Service which is intended for the automated exchange of the information indicated in Section 100 of the Law (hereinafter - the information) with financial institutions online (hereinafter - the WEB service) in the data exchange format developed by the Organisation for Economic Co-operation and Development (hereinafter - the XML scheme) which is available on the website of the Organisation for Economic Co-operation and Development.

61. The State Revenue Service shall, within five working days after receipt of the request of the financial institution, ensure granting of the rights of the WEB service user to the financial institution.

62. The financial institutions shall submit information to the State Revenue Service electronically through the WEB service until the reporting period (calendar year for which information is provided) until 31 July of the following year.

63. [9 December 2025]

64. The financial institutions of Latvia shall prepare information in the XML file format if necessary by dividing in several files in compliance with the requirements of the XML scheme.

[3 January 2017; 9 December 2025]

65. When providing information on the address of the financial account holder and the address of the beneficial owner of a passive non-financial entity, the following information shall be indicated:

65.1. the residence address of the individual (account holder) and the beneficial owner of a passive non-financial entity available to the financial institution, but, if not available, the address for sending correspondence available to the financial institution;

65.2. the legal address of the entity or actual address of the principal office available to the financial institution, but, if not available, the address for sending correspondence available to the financial institution.

66. If the financial institution establishes in accordance with the procedures referred to in this Regulation that the holder of an individual financial account or the beneficial owner of the financial account holder of a passive non-financial entity is a tax resident in several participating jurisdictions, the financial institution shall provide information on the financial account separately for each participating jurisdiction.

67. When providing information on the balance (value) of financial accounts, the financial institution shall comply with the following special provisions for calculating the balance (value):

67.1. the balance (value) of the account is not reduced by any amount of liabilities of the account holder or beneficial owner towards the financial institution or the entity related thereto;

67.2. the amount of interest in capital is calculated by taking into account the assessment method which is most often used by the financial institution in evaluation of interest in capital;

67.3. regarding a custodial account - the financial institution is entitled to deduct from the total gross amount of interest, dividends and other income, and also from the total gross amount of revenues from selling or extinguishing financial assets, such commission received by the financial institution which is related to the disbursement of the abovementioned income and maintenance of the financial account;

67.4. regarding selling or extinguishing financial assets in the custodial account - the financial institution shall include also the unpaid interest payments which have been accumulated prior to selling or extinguishing into the total amount of revenues.

68. If a reportable account was closed in the relevant reporting period, the financial institution shall notify the fact of closing the reportable financial account in accordance with the procedures referred to in this Regulation, without indicating information on the balance or value of the closed financial account. Closing of the financial account shall not revoke the obligation of the financial institution specified in Section 100 of the Law to provide other information specified in Section 100 of the Law on the closed reportable financial account regarding the relevant reporting period.

69. If the financial institution does not have in its possession information which, in accordance with the Law and this Regulation, must be provided to the State Revenue Service, it shall, as soon as possible but not later than by 31 July of the year following the reporting year, submit a certification to the State Revenue Service through the electronic declaration system of the State Revenue Service.

[9 December 2025]

70. The State Revenue Service shall, within five working days after receipt of information, inform the financial institution electronically through the WEB service of the receipt of the information. If the State Revenue Service establishes at the time when the information is submitted that the requirements of the XML scheme have not been complied with, it shall, within five working days after receipt of the information, inform the financial institution electronically through the WEB service of the established non-conformities.

71. The financial institution shall, within 10 working days after information on the necessary corrections has been received from the State Revenue Service on the basis of Paragraph 70 of this Regulation, submit the relevant corrections to the State Revenue Service, using the WEB service.

72. The State Revenue Service shall ensure that the information received from the financial institutions on the financial accounts of the residents of these countries with the financial institutions is sent to the competent authorities of the participating jurisdictions by 30 September of the year following the reporting period.

73. If the financial institution cannot provide information in accordance with the requirements referred to in Paragraph 60 of this Regulation, it shall, as soon as possible but not later than by 31 July of the year following the reporting period, inform the State Revenue Service of the reasons for the non-provision of information and the foreseeable date for the provision of information.

74. If the foreseeable date for providing information is set after 30 September of the year following the reporting year, the State Revenue Service shall, within 20 working days after receipt of the information referred to in Paragraph 73 of this Regulation, inform the competent authority of the participating jurisdiction of the reasons for the non-provision of information and the foreseeable date for the provision of information.

[3 January 2017]

75. If the competent authority of the participating jurisdiction notifies that the information provided by the financial institution is erroneous, incomplete or otherwise non-conforming to the requirements of the XML scheme, the State Revenue Service shall, as soon as possible but not later than within 20 working days after receipt of information from the competent authority of the participating jurisdiction, inform the financial institution thereof through the electronic declaration system of the State Revenue Service. When informing the financial institution, the State Revenue Service shall provide access to the report of the competent authority of the participating jurisdiction for the financial institution, indicating the date of its receipt.

[3 January 2017]

76. The financial institution shall, within two months after receipt of the information referred to in Paragraph 75 of this Regulation from the State Revenue Service, submit the requested or corrected information thereto electronically, in conformity with Paragraph 64 of this Regulation and using the WEB service or the electronic declaration system of the State Revenue Service. The requirement referred to in Paragraph 64 of this Regulation shall not apply if the information must be submitted in writing based on the request of the competent authority of the participating jurisdiction.

77. If the financial institution cannot provide information in accordance with the requirements referred to in Paragraph 76 of this Regulation, it shall, as soon as possible but not later than within two months after receipt of the information referred to in Paragraph 75 of this Regulation from the State Revenue Service, inform it of the reasons for the non-provision of information and the foreseeable date for the provision of information.

9. Closing Provisions

78. This Regulation shall come into force on 15 January 2016.

[9 December 2025]

80. The following regulations for the provision and exchange of information shall be applicable in respect of 2019:

80.1. when applying Paragraph 62 of this Regulation, the financial institutions shall electronically provide information to the State Revenue Service by 30 October 2020 through the WEB service;

80.2. when applying Paragraph 69 of this Regulation, if the financial institution does not have at its disposal information which, in accordance with the Law and this Regulation, must be provided to the State Revenue Service, it shall, as soon as possible but not later than by 30 October 2020, submit a zero report to the State Revenue Service in compliance with Paragraphs 62, 63, and 64 of this Regulation;

80.3. when applying Paragraph 72 of this Regulation, the State Revenue Service shall ensure that the information received from the financial institutions on the financial accounts of the residents of these countries with the financial institutions is sent to the competent authorities of the participating jurisdictions by 30 December 2020;

80.4. when applying Paragraph 73 of this Regulation, if the financial institution cannot provide information in accordance with the requirements referred to in Paragraph 60 of this Regulation, it shall, as soon as possible but not later than by 30 October 2020, inform the State Revenue Service of the reasons for the non-provision of information and the foreseeable date for the provision of information;

80.5. when applying Paragraph 74 of this Regulation, if the foreseeable date for providing information is set after 30 December 2020, the State Revenue Service shall, within 20 working days after receipt of the information referred to in Paragraph 73 and Sub-paragraph 80.4 of this Regulation, inform the competent authority of the participating jurisdiction of the reasons for the non-provision of information and the foreseeable date for the provision of information.

[14 July 2020]

Informative Reference to the European Union Directives

[14 July 2020; 9 December 2025]

The Regulation contains legal norms arising from:

1) Council Directive 2014/107/EU of 9 December 2014 amending Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation;

2) Council Directive (EU) 2020/876 of 24 June 2020 amending Directive 2011/16/EU to address the urgent need to defer certain time limits for the filing and exchange of information in the field of taxation because of the COVID-19 pandemic;

3) Council Directive (EU) 2023/2226 of 17 October 2023 amending Directive 2011/16/EU on administrative cooperation in the field of taxation.

Prime Minister Laimdota Straujuma

Minister for Finance Jānis Reirs

Annex
Cabinet Regulation No. 20
5 January 2016

Participating Jurisdictions and Date of Determining the Category of Accounts

[9 December 2025]

Translation © 2026 Valsts valodas centrs (State Language Centre)