13/03/2020 ECOVIS ProventusLaw training “International Economic and Financial Sanctions and their Risk Management in Fintech Companies” took place in Vilnius. AML and compliance people from financial sector were invited to
Finance institutions licensing in a single European market
Fintech companies, banks, electronic money institutions, payment service providers, insurance companies, investment managers and investment funds, forex dealers, securities brokers and other finance institutions in Europe are subject to higher regulation and risk management requirements. Licensing of a finance institution in one of the member states within the European Economic Area (EEA)/European Union (EU) opens up business opportunities to provide services in all other EEA/EU states, enjoy benefits of a Common Market of almost 500 million wealthy consumers and over 20 million businesses.
Fintech company or other finance institution registered and licensed in Lithuania provides significant competitive advantage and opens up European financial market at a significantly lower incorporation and operational costs. Favourable regulatory environment, excellent infrastructure, the fastest internet and quality talent pool make Lithuania and primarily its capital Vilnius attractive for large international finance institutions as well as Fintech start-ups.
The official policy of the Bank of Lithuania (regulator) and the Government is a creation of regulatory environment and favourable ecosystem for foreign Fintech companies, in order to attract foreign finance institutions and FinTech start-ups into Lithuania. Regulatory behaviour and significantly lower finance institution incorporation, licensing and maintenance costs is what makes Lithuania preferred jurisdiction for the finance business people from around the world, seeking licensing for their European and global activities.
The reasons why Lithuania is one of the top jurisdictions in EU for Finance Institution licensing:
- No particular requirement for company CEO and top management reside in Lithuania or Europe.
- Application for a license submitted without establishing a company. Payment of the capital and incorporation of the company starts at the end of the licensing process.
- Fast licensing process.
- Licensing documentation can be submitted in English.
- Possibility for non-banks to provide individual client IBAN accounts. Lookup for the IBAN account according to the alternate identifier: mobile phone number (MSISDN) and Email (URI).
- Non-banks have direct access to SEPA through CENTROlink payment system managed by the Regulator.
- Possibility for non-banks to safeguard client funds in the accounts of the Bank of Lithuania (Central Bank of EU member state).
- Remote client verification. Innovative “know your customer” processes for remote client verification allows open client accounts without physical presence of the client.
- Fast and easy license passporting procedure in to the other EU jurisdictions. Regulators in other EU jurisdictions cannot raise additional requirements.
- No regulatory sanctions for the first year. The Bank of Lithuania is committed to support start-ups and not to punish them during the first year of operation for minor infringements.
- Start-up visa. Special visas for the citizens of non-EU/EEA countries running innovative businesses in Lithuania.
- Companies licensed in Lithuania allowed being direct members of the stock exchanges, depositories and clearinghouses registered in any other EU jurisdiction.
They fully handle all aspects of financial or corporate matters From our perspective, they fully handle all aspects of financial or corporate matters with a highly professional dedicated team. Their knowledge of the financial services industry within their local market is supporting us in our efforts across Europe. I would not hesitate in recommending ECOVIS ProventusLaw as a strong and reliable law firm for any dealings with the regulatory body in Lithuania and as a gate for the for international financial services companies to Europe. Perfect 10/10 Always on time. Always reliable. Always professional. This is how this team works with us and deals with regulatory authorities in our sector. Working with the firm is always constructive, friendly and solution-oriented They fully handle all aspects of financial or corporate matters with a highly professional dedicated team. Working with the firm is always constructive, friendly and solution-oriented. I would not hesitate in recommending ECOVIS ProventusLaw as a strong and offering when dealing with the regulatory body in Lithuania. Working with ECOVIS ProventusLaw we got the real international expertise brought to the local Lithuanian situation. From our advisers we got new and effective solutions to our persisting problems. That was a really new and positive experience on how to solve our legal matters.