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Bank of Lithuania Sees 44% Drop in Complaints, Driven by Fewer Issues with Payment Services
In the first half of 2024, the Bank of Lithuania reported a 44% decline in complaints, receiving 521 cases compared to last year’s higher volume. This reduction is largely attributed to fewer complaints regarding payment services, which still account for 65% of all cases. Other complaints focused on insurance (13%) and lending services (11%), with a smaller share related to investment and other financial services.
Payment Service Complaints:
The majority of payment service complaints involved account restrictions or closures, making up nearly 40% of all complaints. Other issues included financial fraud cases (over a third of the complaints), payment card issues, and processing errors in payment transactions.
Key Factors in Decline:
Complaints about payment services saw a significant decrease, from 741 in early 2023 to 336 this year, largely due to the Bank of Lithuania’s proactive supervision. Efforts included analyzing industry practices, issuing recommendations, holding regular discussions with financial market participants, and emphasizing fraud prevention, anti-money laundering, and financial literacy. Payment service providers are also actively working to implement these regulatory recommendations.
This proactive approach by the central bank and industry cooperation has contributed to a more responsive and resilient financial sector.
Bank of Lithuania Sets 2025 Contribution Rates for Financial Market Participants
On October 14, 2024, the Bank of Lithuania approved Resolution No. 03-115, establishing contribution rates for financial market participants in 2025. This Resolution, alongside Resolution No. 03-73, outlines the calculation and payment procedures for these contributions, specifying both the rates and deadlines.
Contribution Rates for 2025:
The 2025 contribution rates are set at 0.65% of the previous year’s income for both electronic money institutions and payment institutions:
- Electronic Money Institutions: Contributions are based on income from issuing electronic money and providing payment services. The maximum contribution rate is capped at 0.65%.
- Payment Institutions: Contributions are calculated on income from payment services, with a maximum contribution rate also set at 0.65%.
Payment Deadline and Details:
Participants must submit their contributions by May 31, 2025, to the designated Bank of Lithuania account (No. LT34 1010 0000 0037 1223).
Bank of Lithuania Adopts EBA Guidelines for Historical Data Resubmission
Effective October 17, 2024, the Bank of Lithuania will adhere to the European Banking Authority’s (EBA) Guidelines on the resubmission of historical data (EBA/GL/2024/04) within its financial market supervision. This decision aligns Lithuania’s oversight practices with the EBA’s Supervision and Resolution Reporting Framework, covering entities such as credit institutions, payment institutions, and brokerage firms.
Key Requirements:
Under these Guidelines, financial sector entities must correct and resubmit historical data to the supervisory or resolution authority if the data contains errors, inaccuracies, or significant changes. Specific circumstances are outlined where resubmission is not necessary, reducing administrative burdens without compromising data integrity.
Ensuring Data Quality:
The Guidelines reinforce the requirement for accurate, consistent, and complete reporting. They offer a structured approach for entities to meet reporting obligations with high-quality data, assisting both supervisors and the EBA in performing their roles effectively. Financial market participants are advised to review and adjust their internal reporting procedures to comply with these new requirements.
These updates will contribute to enhanced data reliability, ensuring robust supervisory processes across Lithuania’s financial sector.
Bank of Lithuania Updates Financial Market Supervision Policy for Enhanced Transparency and Consumer Focus
The Bank of Lithuania has released a draft update to its financial market supervision policy, incorporating EU recommendations, international standards, and input from market surveys. This updated approach emphasizes enhanced transparency, stronger dialogue with stakeholders, and improved market stability to deliver greater consumer value.
Key Highlights:
- Strengthened AML and CTF Oversight: Enhanced supervision to prevent money laundering and terrorist financing.
- Consumer-Focused Culture: Emphasis on consumer rights and protection within the financial market.
- Efficiency Through Digital Solutions: Commitment to operational efficiency with advanced digital tools.
- Risk-Based Supervision: Application of a risk-based framework across all supervisory activities.
- Guidance for Financial Market Participants: Ongoing advisory support for compliance and best practices.
- Open Dialogue: Continuous communication with financial market participants.
- Proportional and Effective Enforcement: Enhanced impact measures with proportionality, including administrative arrangements.
- Increased Transparency: Publication of comprehensive information on supervisory expectations, priorities, and examples of effective and ineffective practices.
The Bank of Lithuania encourages financial institutions to review the updated policy closely to align with key principles for improving market resilience and consumer trust.
Upcoming Bank of Lithuania Consultation Events for Financial Market Participants
The Bank of Lithuania’s Financial Market Supervision Department is hosting two key consultation events this month. These sessions aim to clarify regulatory expectations, address practical challenges, and provide guidance for compliance within specific financial sectors.
1. “Crowdfunding – One Year of EU Regulation” – November 27, 2024, at 10:00 A.M.
Hosted by the Investment Services and Companies Supervision Division, this event will review practical aspects of the EU Crowdfunding Regulation after its first year of application. Participants will have the opportunity to ask questions regarding compliance and best practices.
Location: Bank of Lithuania premises, in Lithuanian. Expected duration: up to 3 hours.
2. “Current Issues in Payment Services” – November 28, 2024, at 10:00 A.M.
This session, organized by the Financial Market Supervision Department, will discuss essential topics for payment service providers, explore real-life case studies, and outline the Bank’s recommendations and expectations. Targeted participants include representatives of credit, electronic money, and payment institutions.
Both events provide valuable insights into regulatory changes and foster open dialogue between the Bank of Lithuania and financial market participants.
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