Lithuanian parliament voted in favour of the amendments to the Law on the Prevention of Money Laundering and Terrorist Financing letting a driving license to be an acceptable proof of identity in Lithuania as of January 2021. This shows that Lithuanian authorities continues to prove a strong level of commitment to FinTech sector by creating a fintech-friendly regulatory environment.
“This step will make it easier for non-EU nationals to open bank accounts and to attract companies wishing to relocate from the United Kingdom after Brexit, as firms will have the similar mechanisms to identify their customers as in United Kingdom”, says Kęstutis Kvainauskas, attorney at law of ECOVIS ProventusLaw.
There are various banks, payment and electronic money institutions in Lithuania with at least a few dozen options to choose from between national and international financial institutions. Most offer enough products to fit the needs of most with some specializing in retail, other in SMEs and other in investments and corporations. All deposits in Lithuania are protected up to 100 thousand euros and there will be account activation fees.
Opening a bank account is simple – you have to arrive at any customer service outlet of the chosen bank and enter into a bank account agreement. The bank will create bank account number in IBAN bank account format. Account opening and client identification can be done online without physical presence of the client in the branch in Lithuania.
Lithuanian banks don’t ask for a huge pile of paperwork as a standard but reserve the right to ask for more complex documentary evidence if they think it’s needed. If you’re opening a simple account you’re unlikely to need more than the following:
In order to open a current bank account in Lithuania, a natural person must submit:
- power of attorney if a bank account is being opened by power of attorney
- an application form which is issued by the bank (each bank has its own forms);
- an identification document which must be valid (ID card, passport or driving license);
- a residence permit and other documents, in the case of foreign residents.
Important to note that in order to be accepted as proof of ID, driving licenses issued by non-EU countries will need to meet the standards of the Directive 2006/126/EC of the European Parliament and of the Council of 20 December 2006 on driving licences.
This is also good news for FinTech companies planning to set up their business for an expansion the EU/EEA, as corporate bank accounts for companies must be opened prior to the company registration. Corporate bank account is mandatory when opening a company in Lithuania, as the share capital must be deposited here prior to the business registration procedure.
We remind investors that the corporate bank account is mandatory when opening a company in Lithuania, as the share capital must be deposited here prior to the business registration procedure. Also, you can rely on our local consultants for assistance in setting up a corporate bank account in Lithuania.