Lithuanian Authorities Reveal New Crypto Firms in AML Breach

Lithuania’s FNTT has released a new list of AML violators. Crypto firms Bitgron and Hodleris, among others, have been named.

FNTT seeing a company breaching money laundry rules.
Created by Kornelija Poderskytė from DailyCoin
  • 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. 

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 country’s 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. 

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will not quash the decision or suspend its enforcement except when penalties have been imposed, or a license has been withdrawn. 

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.