- The Lithuanian Financial Intelligence Unit has named new AML violators.
- Affected companies have received an official warning or fine.
- The companies have been given a one-month window to appeal the decision.
The Lithuanian Financial Intelligence Unit (FNTT) released a new list of companies that have violated anti-money laundering provisions as of 2nd August 2023.
The list included both popular crypto firms in the country and financial companies believed to have breached the AML regulation.ย
Penalties or Official Warnings for Violators
As a budding regional financial hub, Lithuania has increasingly become a target for tax evasion and money laundering. The countryโs primary AML/CTF regulation provides a framework that stipulates the obligations of financial institutions to monitor, detect, prevent, and report malicious activities.
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The guidelines include collecting, evaluating, and submitting all information relating to suspicious transactions with signs of money laundering or other components of fraud to the Financial Crimes Investigation Service (FCIS). Companies must also employ a full-time qualified AML/KYC compliance officer in the country.
Virtual currency service providers who fail to honor these obligations are penalized or given an official warning.ย
The newly released list of firms heavily featured firms operating within the crypto industry. Spectro Finance and Bitgron were issued warnings, in line with the aforementioned guidelines, while BXChange, Kaiser Exchange International, Entara, Stirdena, Hodleris, and Katren CD will be required to pay up to 1.1 million Euros in fines.
Potential for Appeal
The companies that violate AML regulations are eligible to appeal in the Vilnius Regional Administrative Court within one month of receipt of the decision. Appealing will not quash the decision or suspend its enforcement except when penalties have been imposed, or a license has been withdrawn.ย
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