Legal act: Resolution of the Board of the Bank of Lithuania No. 03-105 of 23 July 2020, On the Resolution of the Board of the Bank of Lithuania On the Resolution of the Bank of Lithuania No. 03-259 of 20 December 2018 On the Approval of the Description of the Procedure for the Preparation of Financial and Activity Reports of Electronic Money and Payment Institutions for Supervisory Purposes and for the Submission of the Reports and Other Information to the Bank of Lithuania and on the Approval of Supervisory Report.
Effective date: 1 January, 2021.
Institutions are required to submit three additional reports related to the enforcement of clients’ funds safeguarding requirements and changes in professional indemnity insurance or other equivalent liability coverage for the provision of the account information service and / or the payment initiation service:
- Institution must notify the Bank of Lithuania of the change in the method of safeguarding of funds at least one month before the date of entry into force, termination or expiry of the agreement aimed at safeguarding of funds of electronic money holders and / or payment service users.
- Irrespective of whether the method of safeguarding of funds changes or not, the Institution must notify the Bank of Lithuania of the newly concluded agreement aimed at safeguarding of funds of electronic money holders and / or payment service users within 5 business days from the day of concluding such agreement.
- Institution providing an account information service and / or a payment initiation service must submit the reports specified in the resolution of the Bank of Lithuania within 5 business days after the expiry of the professional liability insurance contract or other liability protection measure.
- To prepare the procedure for submitting new reports.
- To assign responsible personnel for this function.
Resolution of the Board of the Bank of Lithuania
No. 03-83 of 24 May 2018, On the Approval of the Regulations for the Calculation of Initial Capital and Own Funds of Electronic Money Institutions and Payment Institutions and the Forms of the Report on the Calculation of Initial Capital and Own Funds of Electronic Money Institutions (Payment Institutions).
Effective date: 1 September, 2020.
Certain institutions are no longer required to report quarterly capital and other supervisory reports (forms EM007-EM008) from 30 September 2020, onwards:
Institutions that provide only payment initiation and / or account information services and / or only engage in the collection of fees for utilities or other regular services to meet household needs, the collection of fines and / or other tolls to public authorities, social benefits payout activities, will be required to submit only annual reports in the specified forms: on 20 January of each calendar year and at the end of the financial year, adjusted in accordance with the annual financial statements approved by the general meeting of shareholders
To prepare an internal document of the company, which includes:
- a plan when and how to prepare reports to the Bank of Lithuania, and
- determination of actions the institution must take to monitor and ensure that capital needs are sufficient.
Prepared by associate, assitant attorney-at-law Eglė Juškaitė.