During the third quarter of 2021, the value of payment transactions executed by electronic money institutions (EMI) and payment institutions (PI), the backbone of Lithuania’s licensed fintech sector, has increased by 6.3 times compared to the corresponding quarter in 2020, reaching EUR 157.6 billion. In comparison to the second quarter of 2021, the value of payment transactions completed increased by 29.4 percent.
Furthermore, EMI and PI generated EUR 333.6 million worth of revenue specifically from licensed activities in the third quarter of 2021. Which is EUR 264.8 million or 4.8 times increase when compared to the same period in 2020.
In terms of distribution of the earned revenue by the institutions, EPI resulted 94 percent of the total revenue generated under the analyzed period, meanwhile PI accounted for the rest of 6 percent.
Although, EMI and PI are achieving great financial results, unfortunately, some institutions fail to comply with the requirements set-out by the Bank of Lithuania. Therefore, the Bank of Lithuania is willing to remain its focus on institutions’ compliance with core requirements, including anti-money laundering, equity, customer fund protection, information and communication technology, security risk management, and internal control. As stated by Head of Payment Market Supervision Division, Bank of Lithuania will not tolerate breaches of the set-out requirements and thereby is willing to take appropriate enforcement actions.
As of the fourth quarter of 2021, eighteen individual and thematic examinations are being conducted to assess FinTech institutions’ compliance with the requirements for anti – money laundering (AML) policy, customer knowledge (KYC) policy, fraud risk management, equity capital, customer funds protection, internal audit and internal control. By December 2021, the licenses of three institutions had been revoked, one had been temporarily banned from providing services to legal persons, five fines had been imposed and five public announcements of infringements had been made.
Nonetheless, the Lithuanian Fintech sector is expanding at significant rate. There were 139 institutions on the public listings at the end of September of 2021, of which 85 are EMI and 54 PI, compared to 121 at a certain time in 2020 (73 EMI and 48 PI). Approximately 30 applications for EPI or MFI licenses are currently being processed by the Bank of Lithuania.
We can help you with:
– complying with the requirements of the Bank of Lithuania and acquire a license for your FinTech institution
– legal issues, prepare necessary documents and represent your company at the Bank of Lithuania.
Sintesi Consulting has a number of solid partnerships with law firms in Lithuania. We ensure that the client receives a full-service package and licensing process will go as professional and smooth as possible.
For more information contact us:
E-mail: firstname.lastname@example.org; mobile phone: +370 656 96055.
For reference to the original source of the article, please click here: Value of payment transactions by electronic money and payment institutions exceeded €150 billion | Bank of Lithuania (lb.lt)
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