knowledge and compliance: challenges for Latvian educational system

Abstract

Compliance in general terms is the adherence to existing rules and regulations laid down by those in authority. In the new regulatory environment, knowledge of compliance is becoming increasingly important across all areas of business. But according to EU Commission, present sanctioning regimes are often weak and quite heterogeneous. In addition, research studies and review of Latvia‘s laws that regulate banking industry confirm very low level of sanctions in Latvia. These above-mentioned findings should urge Latvia‘s banking sector to pay greater attention to the issues of compliance risk management. To ensure compliance knowledge, an appropriate specialised department should be organised in commercial banks and staff of such department should have respective knowledge.