REGULATORY COMPLIANCE, DUE DILIGENCE, RISK MANAGEMENT AND AML

New risks associated with Financial technologies arise in a number of areas, including cross-border transactions and data privacy. Achieving regulatory compliance has become a daily focus for financial institutions of all sizes because the cost of non-compliance is too high. As a result, FinTech companies must be proactive and take actions to make sure they are prepared for the changing business environment. Moreover, they need to be prepared to build on their everyday risk management and to comply with the latest regulation. ECOVIS ProventusLaw established relationships with regulatory bodies and have had significant experience with the development of the law and policy on financial services both locally and internationally.

Regulatory compliance

Compliance with these obligations means ensuring a clear understanding of the ongoing requirements for financial institutions and often the aggregation, calculation, maintenance, reconciliation and submission of extensive data sets to various parties on a regular basis. In order to comply with regulatory requirements, we offer our clients the following services:

  • independent review of policies and business processes and procedures against Lithuanian and EU regulatory requirements;
  • preparation and implementation of regulatory changes in their procedures and processes of financial institutions;
  • assistance in resolving implementation issues;
  • board training, i.e. director responsibilities, obligations and ‘better practice’ governance requirements;
  • assessment of implemented requirements and changes.

Due diligence services

The acquisition or sale of a company are both challenging processes that offer great opportunities but also bear significant risks. The comprehensive analysis of the target entity is a critical key factor for success in any mergers and/or acquisitions (M&A) transactions. ECOVIS ProventusLaw provides due diligence services to foreign and local investors in such situations as company acquisition or acquisition of a shareholding, company sale or sale of a shareholding and provides the relevant information which allows making an informed and clever decision on investment

ECOVIS ProventusLaw offers:

  • assistance in the implementation of Know Your Customer (KYC) procedures;
  • assessment of the level of customer risk;
  • investment, financing or credit check;
  • assessment of existing business relations, structures, activities;
  • commercial analysis and assessment of location and market factors;
  • assistance by determining the competitive landscape.

GDPR compliance

The General Data Protection Regulation (GDPR) is a legal framework that sets the guidelines for collection and processing of personal data of the data subjects of the European Union (EU). The regulation applies to any organisation that collects and controls personal data from the EU citizens. Even if your organisation is outside of the EU but collects and processes data of the EU citizens, the regulation also applies. FinTech companies also should implement the provisions of the Regulation, as these companies providing payment and other financial services collect, control and process a wide range of personal data. Failure to comply with the GDPR may result in penalties up to 20 Million Euros or 4% of the organisation’s global turnover (whichever amounts to more).

ECOVIS ProventusLaw is ready to assist companies in meeting the GDPR requirements, protect personal data as well as data subject’s rights. ECOVIS ProventusLaw offers the following services related to GDPR compliance:

  • review the company’s internal procedures related to the processing of personal data;
  • preparation of internal procedures and rules that will allow to continue your operations in compliance with the GDPR;
  • building up of safety mechanisms;
  • data protection impact assessment;
  • representation in disputes over personal data;
  • staff training on personal data protection issues.

AML compliance, risk management

The fourth European directive obliges to cooperate with the authorities against money laundering and terrorist financing. The European Commission carries out risk assessment in order to identify and respond to the risks affecting the EU internal market. The European Union adopted robust legislation to fight against money laundering and terrorist financing which contributes to those international efforts. Anti-money laundering (AML) audits and reviews are one of the best ways to reveal whether your AML systems and control programs are effective, and where it might fall short. Achieving these goals can be a challenge due to the complexities of conducting the audit review itself.

ECOVIS performs the following AML / CTF compliance services for financial institutions:

  • assistance in developing an AML compliance program;
  • assistance in reviewing and updating an AML Risk Assessment;
  • comparison of existing company documentation versus documentation required by AML / CTF requirements;
  • development of internal controls and systems the institution uses to detect and report the financial crime;
  • AML compliance training programs for employees;
  • AML Compliance Officer services;
  • assistance to the clients in their AML/FT internal audits;
  • risk mitigation guidance.
  • AML related audit services;

Our experience and consultative approach in AML and generally in the finance industry ensures a high level of precision and expertise.

More about FinTech licensing.

More about ECOVIS experience.

Inga Karulaitytė-Kvainauskienė

Lawyer, attorney at law, partner of the law firm

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