Salv Becomes First RegTech Firm in Europe to Secure 'Closed Service KYC Utility' Licence

Published 17 days ago

European Regulatory Technology (RegTech) scale-up, Salv, has made history by becoming the first tech firm in Europe to win a regulator-awarded licence to operate as a ‘Closed Service KYC Utility’ service provider.

Pioneering Licence for Financial Crime Prevention

The licence, granted by the Data State Inspectorate of Latvia, was established in 2019 and represents a significant development in the fight against financial crime. It allows financial institutions to collaborate when criminal activity is suspected or detected. The licence now enables firms to alert others when financial crime is identified, facilitating swift action to prevent it from escalating further across the financial services ecosystem.

Setting High Standards

To secure this licence, Salv had to demonstrate corporate due diligence and achieve ISO/IEC 27001 certification. This certification represents the highest levels of security, data protection, and compliance. The licence will now allow financial institutions to utilise Salv’s Bridge platform to aid in combating financial crime.

Rising Financial Crime in Latvia

According to the Financial Industry Association, customers of the four largest commercial banks in Latvia were defrauded of €12.7 million in 2023. Prevented cases reached €9.2 million, with €5.6 million obtained illegally as a result of investment fraud and €5.5 million from telephone fraud. An alarming surge in financial crime was reported, with an 84% increase in investment fraud cases in 2023 compared to the previous year.

The Role of Collaboration

“Collaboration between financial institutions is only possible when there is complete confidence and trust in the control, security, and compliance of the processes and underlying technology infrastructure,” said Laima Letina, Advisor to the Finance Latvia Association. She added that Salv has set a high bar for others to achieve by being the first to meet the stringent quality and regulatory mandates.

Bruno Puriņš, Salv Market lead in Latvia, stated that the company’s success in securing this licence assures both current and future clients - in the Baltic States and more broadly across Europe - that the financial services community can unite against financial crime.

Edgars Pastars, Senior Associate at Baltics legal advisory firm ZAB COBALT, highlighted that Latvia is at the forefront of innovation. He praised the country for pioneering development of standards and regulations that have transformed the concept of fighting financial crime into reality.

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