Comparative analysis of the customer identification and due diligence in the financial system in the Republic of Latvia and the Russian Federation

Puriņš, Jānis Ričards

Comparative analysis of the customer identification and due diligence in the financial system in the Republic of Latvia and the Russian Federation

Date

2022

Authors

Puriņš, Jānis Ričards

Publisher

Riga Graduate School of Law

Abstract

Nowadays, to prevent money laundering and terrorism financing customer due diligence and customer identification play crucial roles in the banking sector. The purpose of the bachelor thesis is to unfold the vulnerabilities of customer due diligence and customer identification between Russia and Latvia. In the thesis, doctrinal research methodology was used to examine and analyse the laws and threats to which each country could be exposed. Today each subject of the law, who is bound under the money laundering and combating terrorism financing law, has to have an inner control system, which is responsible to prevent violations of law. Each customer has to reveal who is the beneficial owner, check the customer's background, what is the nature of the business relationship, etc. The most important component to successfully stopping money laundering and terrorism financing are companies adaptability to each situation. Without sufficient understanding of the customer, the subject of the law can not establish business relationships. The thesis is compared European directive no. 2018/843, Russian directive no. 115-FZ, and Latvian AML directive.

Keywords

Research Subject Categories::LAW/JURISPRUDENCE::Financial law , Research Subject Categories::LAW/JURISPRUDENCE::Other law::Comparative law , Customer due diligence , Customer identification , Anti-money laundering , The Republic of Latvia , The Russian Federation