Banks, Financial Services, Fintech, Lithuania

The Bank of Lithuania said that it had imposed fines of 28,000 euros and 10,000 euros on Wittex and Assis, respectively, for failing to comply with the Law on Electronic Money and Electronic Money Institutions and the Law on Payment Institutions. 

In July–October 2019, Wittix held all client money in accounts that were opened in the name of another legal entity and were not intended to hold client money. Since the e-money institution provided payment services through an agent, it had to notify the central bank, but it failed to do so, according to the press release. 

The CEO of Wittix not only failed to ensure the proper functioning of the internal control system and to prevent risks, but also made risky decisions that did not meet the legal requirements and put client money at risk, it said.

As a result of these actions, Wittix suffered losses of 31,600 euros, because it had to use its own funds to compensate for the loss of client money in one of the accounts. 

Wittix received its e-money license from the Bank of Lithuania in May 2019.