Banks, Financial Services, Fintech, Lithuania

“Capital requirements, along with the prevention of money laundering and safeguarding of customer funds, are the key areas that fall under our supervision. Unfortunately, some EMIs and PIs pay too little attention to this particular aspect, which is in fact an important indicator of their financial state. However, after having received a warning, they tend to quickly resolve all capital adequacy issues and accumulate the necessary buffers,” said Rūta Merkevičiūtė, Head of the Electronic Money and Payment Institutions Supervision Division of the Bank of Lithuania. 

The Supervision Service of the Bank of Lithuania has established that, according to the data as of the end of the first quarter of 2020, three EMIs – Guru Pay, UAB, PHOENIX PAYMENTS, UAB, Transactive Systems, UAB – and one PI – DSBC Financial Europe, UAB – failed to meet the applicable capital requirements (lacking from 4,000 EUR to 77,000 EUR) and thus violated the Republic of Lithuania Law on Electronic Money and Electronic Money Institutions as well as the Law on Payment Institutions. The aforementioned institutions have already eliminated the indicated shortcomings and took measures to prevent their reoccurrence in the future. It has also been established that no customer interests were violated. In view of the above, the Bank of Lithuania decided to impose a mild enforcement measure by making these infringements public.