LatviaLaw on Digital Operational Resilience of the Financial Market and the Use of Artificial Intelligence, Articles 7, 8(5)-(7), 10(3)-(4) and 11(2)
Finanšu tirgus digitālās darbības noturības un mākslīgā intelekta izmantošanas likums 7. pants, 8. panta piektā līdz septītā daļa, 10. panta trešā un ceturtā daļa, 11. panta otrā daļa
In force since .
An AI governance rule binding private bodies.
- Obligation class
- Prohibition, Disclosure, Governance
As of .
What it requires
- If you are a financial market participant named in Articles 4 and 5, or the savings and loan association named in Article 6(1), point 5, meet the requirements of Regulation (EU) 2024/1689 on the use of AI, which the Bank of Latvia supervises (Articles 7 and 8(5)).
- Do not use an AI practice that Article 5 of the Regulation prohibits (Article 11(2), point 1).
- Meet the obligations that Articles 16, 22, 23, 24 and 26 of the Regulation place on providers, authorised representatives, importers, distributors and deployers of high-risk AI systems (Article 11(2), points 2 to 6).
- Meet the transparency duties of providers and deployers in Article 50 of the Regulation (Article 11(2), point 10).
- Give the Bank of Latvia and notified bodies correct, complete and truthful information when they ask for it (Article 11(2), point 11).
- Stop the activity immediately when the Bank of Latvia requires it after finding a breach (Article 10(4), point 1).
If you get it wrong
Penalty structure
Top tier, Article 10(3), point 5, for a legal person that breaches the Article 5 prohibition: up to EUR 35,000,000 or 7 percent of total annual turnover, whichever is higher. Point 6 sets EUR 15,000,000 or 3 percent for Article 11(2), points 2 to 10, and point 7 sets EUR 7,500,000 or 1 percent for point 11. A small enterprise, medium enterprise or start-up pays the lower of the two amounts (Article 10(6)). A natural person is fined up to EUR 35,000,000, EUR 15,000,000 or EUR 7,500,000 on the same three tiers.
- Rule
- Lower of for SME
- As of
- Currency
- EUR
- Fixed cap
- 35,000,000
- Turnover percentage cap
- 7
Who enforces it
Enforcement body
The Bank of Latvia (Latvijas Banka) supervises the use of AI by the financial market participants the Law covers, under Article 8(5).
What it makes you log
Logging duty
Articles 7 to 11 allocate supervision and sanctions and state no logging or record-keeping duty of their own.
- Kind
- None
- As of
What this law does
Article 7 applies the AI use requirements of Regulation (EU) 2024/1689 to the financial market participants named in Articles 4 and 5 and to the savings and loan association named in Article 6(1), point 5, in accordance with Article 2 of the Regulation. Article 8(5) makes the Bank of Latvia (Latvijas Banka) the supervisor of those AI use requirements, in accordance with Article 74(6) of the Regulation.
Article 8(6) requires the Bank of Latvia to give the European Central Bank information obtained in that supervision that could be useful for the prudential supervision of a credit institution. Article 8(7) lets the Bank of Latvia set further requirements on the use of AI, and how they are to be met, in areas that directly applicable EU law does not regulate. Article 11(2), point 1 covers breaches of the prohibited AI practices in Article 5 of the Regulation.
Article 11(2), points 2 to 6 cover breaches of the obligations that Articles 16, 22, 23, 24 and 26 of the Regulation place on providers, authorised representatives, importers, distributors and deployers of high-risk AI systems. Article 11(2), point 10 covers breaches of the transparency duties of providers and deployers in Article 50 of the Regulation. Article 11(2), point 11 covers the duty to give the Bank of Latvia and notified bodies correct, complete and truthful information.
Article 10(3), point 5 lets the Bank of Latvia fine a legal person up to EUR 35,000,000 or up to 7 percent of total annual turnover, whichever is higher, for the breach in Article 11(2), point 1. Article 10(3), point 6 sets a fine for a legal person of up to EUR 15,000,000 or up to 3 percent of total annual turnover, whichever is higher, for the breaches in Article 11(2), points 2 to 10.
Under Article 10(6), a small enterprise, medium enterprise or start-up fined under Article 10(3), points 5 to 7 pays the lower of the two amounts. Article 10(4) lets the Bank of Latvia require the responsible person to stop the activity immediately and, for a natural person, impose a temporary ban on specified duties for up to two years. The Law takes effect on the day after its promulgation. The President promulgated the Law on , so it took effect on .
When LexLint raises it
When your app profile says your app provides financial services, makes high-risk automated decisions, generates content with AI or deploys a chatbot.