Updated Rules for Fintech Businesses: The Bank of Lithuania Tightens Regulation

At the beginning of September, the Bank of Lithuania issued updated guidelines for fintech companies concerning sanctions, anti-money laundering (AML), and counter-terrorist financing (CTF) prevention.

To ensure the highest level of security and regulatory compliance, fintech companies are advised to:

• Carefully assess the competence, professional experience, and qualifications of candidates proposed for AML and CTF compliance roles before their appointment.
• Notify the Bank of Lithuania within 7 business days following the appointment or replacement of a board member or relevant employee.

When submitting this information, fintech companies must provide the contact details of the appointed employees and board members, appointment dates, and all supporting documents justifying the appointment.

With increasing regulatory pressure on the fintech sector, the Bank of Lithuania conducted 20 AML/CTF supervision inspections in 2022. These new guidelines serve as an additional preventive measure to ensure thorough due diligence in this area.