Lithuania‘s efforts and attention to money laundering and measures to combat such illicit activities was acknowledged by Moneyval, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism. The experts carried out a comprehensive assessment of the situation in the country and stated the progress made by the Bank of Lithuania in this field.
The latest report takes into account the progress made by Lithuanian authorities in strengthening crime prevention measures. The experts recognised the effective controls that the Bank of Lithuania introduced in relation to authorisation of financial market participants in order to prevent criminals from managing or acquiring a holding in financial institutions. Cooperation between the Bank of Lithuania and the Financial Crime Investigation Service in inspecting financial market participants and exchanging information has also been acknowledged.
“In the context of news about possible risk from Russia, China and other countries it is an example that Lithuania has no tolerance for money laundering and terrorism financing. The experts have recognized that Lithuanian financial institutions have a good understanding of money laundering and financing of terrorism risks and are aware of their anti-money laundering/countering financing of terrorism obligations, so we are in a good way working on“, – says Inga Karulaitytė-Kvainauskienė, attorney-at-law of ECOVIS ProventusLaw.
Moneyval noticed that licensing controls undertaken by the Bank of Lithuania in relation to financial institutions are very good. What is more, the level of sophistication of financial investigations to trace proceeds of crime has improved and the amount of provisionally seized assets in Lithuania has increased considerably. Moreover, according to the experts, Lithuanian authorities have broadly adequate understanding of financing of terrorism risks, consistent with Lithuania’s risk profile.
Important to note that the Bank of Lithuania implements innovative tools and actively consults financial market participants on anti-money laundering issues and aims to deepen their understanding regarding the implementation of the requirements in this area
At the start of January the regulator has established new departments for money-laundering prevention and for electronic money supervision, and invested in technical measures to identify money-laundering risks. It will assess the progress that electronic money and payment institutions make in managing risks related to money laundering and terrorist financing, taking into account their reports to be submitted to the supervisory authority already this year. The European Council’s expert report contains recommendations to the Bank of Lithuania aimed at ensuring that the sanctions imposed on financial institutions are effective and proportionate to the degree of each violation.
Furthermore, in 2018, it also carried out sectorial AML/CTF trainings and introduced a regularly updated section dedicated to FAQs on the prevention of money laundering and terrorist financing on its website.
The law firm ECOVIS ProventusLaw also provides compliance services for Anti-Money Laundering and Counter Terrorist Financing programs and procedures, processes, designed for financial and non-financial institutions. The experience and consultative approach in AML and generally in finance industry of ECOVIS ProventusLaw lawyers ensures high level of precision and expertise.
More about AML audit services offered by ECOVIS ProventusLaw – https://ecovis.lt/fintech/anti-money-laundering-audit-counter-terrorist-financing-aml-ctf-audit/