From Risk to Resilience: ECOVIS ProventusLaw’s Solutions for FCIS Inspections and AML/CTF Compliance

Lithuania’s Financial Crime Investigation Service (FCIS) has been actively conducting inspections on companies to ensure compliance with the country’s Anti-Money Laundering/Counter-Terrorist Financing (AML/CTF) Law. In 2022, the FCIS inspected 30 companies, including cryptocurrency operators, company incorporation service providers, and asset trading companies. Shockingly, 25 companies failed to meet the AML/CTF Law requirements. The FCIS plans to further inspect 24 companies in 2023, specifically focusing on those providing cryptocurrency-related services and cash-intensive businesses. This increased scrutiny indicates the growing emphasis on combating financial crimes in the country.

In line with the surge in suspicious activity reports (SARs), which doubled in 2022 compared to the previous year, it is essential for businesses to prioritize compliance and risk mitigation. The FCIS received over 100,000 SARs in 2022, with the primary reporters being electronic money institutions, payment institutions, and cryptocurrency operators. This rise in SARs can be attributed to the expansion of Lithuania’s Fintech sector and increased financial market participants’ awareness of the risks associated with money laundering.

It is also worth noting that the official institutions are constantly providing information that there are regular attempts to circumvent or violate sanctions in Lithuania. Therefore, the FCIS is keeping a list of sanctioned persons, and the Bank of Lithuania is increasingly imposing sanctions on companies for non-compliance with the requirements of international sanctions.

ECOVIS ProventusLaw is dedicated to assisting companies facing FCIS inspections and navigating the complex AML/CTF and sanctions compliance landscape. Our comprehensive range of services is designed to provide the necessary support and expertise to ensure your business meets the regulatory requirements. Here’s how our law firm can help:

1. Cooperation Strategies. We develop effective cooperation strategies tailored to your company’s needs and circumstances. Our experienced professionals will work closely with you to ensure a collaborative approach throughout the inspection process.

2. Correspondence with FCIS. Our skilled lawyers will draft letters and communicate with the FCIS on your behalf. We understand the importance of clear and concise communication during inspections and strive to present your case effectively to the authorities.

3. Documentation Preparation and Amendment. We assist in preparing or amending the required documentation, including policies, procedures, and risk assessments. Our meticulous attention to detail ensures that your documentation meets the stringent regulatory standards of the AML/CTF and Sanctions Laws.

4. Consultations. We provide expert consultations to address any concerns or questions you may have about the inspection process or AML/CTF and sanctions compliance in general. Our team stays updated with the latest regulations and industry best practices to offer valuable guidance.

5. Investigation of Suspicious Activities. Besides FCIS inspections, we assist with investigating suspicious customer activities. Our skilled team can help you identify and handle potential red flags, ensuring you take appropriate action to mitigate risks effectively.

At ECOVIS ProventusLaw, we understand the importance of proactive compliance and the potential consequences of non-compliance with AML/CTF and sanctions regulations. Our goal is to provide reliable legal support, helping you navigate the complexities of regulatory inspections and ensuring your business maintains a solid and compliant financial crime prevention framework.

As the FCIS continues to intensify its efforts to combat financial crimes, it is crucial to partner with a law firm with the expertise and experience to guide you through these challenges. Contact ECOVIS ProventusLaw today to learn more about our services and how we can assist your company in achieving compliance and safeguarding your reputation in an evolving regulatory landscape.

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