As mentioned previously Electronic Money Institutions in Lithuania and Payment Institutions in Lithuania are obliged to meet the criteria of AML in Lithuania. So as special investigation of activities of E–Money institution in Lithuania was launched and one institution had its license revoked (You can read full article here). One of the main aspects of attracting FinTech companies to Lithuania is CENTROlink, the payment system of the Bank of Lithuania, which provides access to the Single Euro Payments Area (SEPA). However, access is provided only to Electronic Money Institutions in Lithuania or Payment Institutions in Lithuania with an impeccable reputation: since 2016, after assessing the risks of companies, almost 50 applications have been rejected.

To date, Lithuania is the only country that exploits an option in EU banking regulation, providing a minimum start-up capital of 1 million euros, while other countries in the bloc insist that banks have a threshold of 5 million euros. European banking regulators are concerned whether the Lithuanian regulator has sufficient resources to monitor the large number of FinTech companies, such as E-Money institutions in Lithuania and PI in Lithuania, operating in the country.

Stasys Jakeliunas, MEP from the Union of Farmers and Greens of Lithuania, told the Financial Times that he believes the case should affect the development of flexible supervision and regulation of the Central Bank of Lithuania, as well as the financial crime investigation service to prevent that Electronic Money Institutions in Lithuania and Payment Institutions in Lithuania complies with regulation of AML in Lithuania.

In turn, the Bank of Lithuania regularly analyzes the situation on the financial market to help market participants and to increase intolerance to money laundering filling restrictions of AML in Lithuania. It has set an ambitious goal of becoming a regional centre of excellence in the prevention of money laundering and terrorist financing.

In addition, the Bank of Lithuania constantly advises financial market participants, as well as E – Money Institutions in Lithuania and PI in Lithuania, develops official positions, organizes events and trainings, and actively participates in interagency cooperation between the supervisory authorities of the Nordic and Baltic countries and assists the supervisory authorities of Sweden and Estonia in the investigation of money laundering cases. Consistency of developing and interaction helps financial market participants to clarify regulations of AML in Lithuania.

Should you be interested in further questions about Electronic Money Institutions in Lithuania and Payment Institutions in Lithuania, you are welcome to contact our Lawyers in Lithuania at info@gencs.eu

Tel.: +371 67240090