While the normal life was suspended under lockdown due to COVID-19 pandemic, this did not limit Lithuania‘s speed in FinTech licensing. The Board of the Bank of Lithuania has just issued three new electronic money institution licenses. Two of them – UAB Travel Union and UAB BEBAWA – were led by ECOVIS ProventusLaw specialistis though the whole licencing process.
This also corresponds to the information published by the World Bank before a month. Their experts stated that FinTech can help in the response to COVID-19 by providing solutions to maintain social distancing, ensure business continuity, strengthen health-care outcomes, and prevent service disruptions.
‘The COVID-19 crisis has revealed Lithuania’s versatility, flexibility and its determination to becoming a regional FinTech hub and capacity to mobilise its resources in the face of the threat, and to devise innovative solutions to world’s challenges’, says attorney at law of ECOVIS ProventusLaw Kęstutis Kvainauskas.
Licences issued for UAB Travel Union and UAB BEBAWA will provide them the right to issue electronic money and certain services indicated in the Law on Payments.
UAB BEBAWA intends to offer services (e-money, transfer of funds, payment processing) to European companies whose clients are expected to include pension funds, e-commerce shops, tax consultants or business consultants with customers with specific business needs. All shares in the institution are owned by Domando AG, a Swiss-registered company.
UAB Travel Union will pay particular attention to the tourism services sector. In addition to traditional electronic money and payment services, the institution will provide useful offers to travellers. It is owned by Travel Union Finance Limited, established in the United Kingdom.
ECOVIS ProventusLaw has already successfully guided more than 30 FinTech companies through the licensing process during the last few years. Besides the licensing of financial institutions, the firm leads its clients through business incorporation, finance and tax issues, AML, GDPR, regulatory compliance, information security matters. ECOVIS ProventusLaw has experienced and certified experts in money-laundering prevention (CAMS) and personal data protection (CIPP/E), as well experts in IT security.
Lithuania attracts FinTech companies from all over the world due to its favourable regulatory environment: co-operative attitude (newcomer programme), smooth authorization process (among the fastest pan-European FinTech licensing in the EU, specialized bank licenses for challenger banks), forward-thinking regulation, access to a payment infrastructure (CENTROlink) and a pro-innovative approach (regulatory sandbox for testing innovative idea).