Lithuanian Government made one more step expecting to enhance the development of the financial technology industry (FinTech) in the country. It approved a new regulation that will better enable financial institutions to identify customers in a non-physical manner (i.e. not face to face identification).
“New regulation will enhance Lithuania’s competitiveness in this field and contribute to the development of FinTech business in Lithuania”, – says Inga Karulaitytė-Kvainauskienė, attorney-at-law in ECOVIS ProventusLaw (Lithuania).
According to the new regulation, remote identification will be possible not only by using a qualified electronic signature, but also by applying two supplementary methods, that is, by using the means of electronic identification issued in the European Union under notified electronic identification schemes and by electronic means allowing video streaming/video transmissions.
Remote identification will be possible not only by using a qualified electronic signature, but also by applying two supplementary methods.
Lithuania is already regarded as one of top countries in European Union for FinTech companies. Application for a licence can be submitted here without establishing a company, there are no particular requirements for senior management, the Central Bank of Lithuania reviews application and issues a licence for Payment or E-money institution within period of 3 months and even faster. Moreover, the Central Bank of Lithuania is also committed not to punish newly established Payment or E-money institutions during the first year of supervision for minor infringements and all documents can be submitted in English.
A positive approach by the regulators, perfect information technology infrastructure, competent professionals create in Lithuania a great eco system for FinTech business and start-ups.