Lithuania Reveals New Crypto Firms in AML Breach: Fines or Warning Issued

• Lithuanian Financial Intelligence Unit (FNTT) revealed a list of companies that violated anti-money laundering provisions on August 2nd, 2023.
• Companies have been given a one-month window to appeal the decision and could face warnings or fines up to 1.1 million Euros.
• The list included virtual currency service providers as well as other financial companies.

Lithuanian Financial Intelligence Unit Reveals AML Violators

The Lithuanian Financial Intelligence Unit (FNTT) recently released a list of companies that have broken the country’s primary Anti-Money Laundering/Counter Terrorism Financing (AML/CTF) regulations on August 2nd, 2023. Affected companies have been given a one-month window to appeal the decision, and may face penalties or official warnings if found guilty.

Violations by Virtual Currency Service Providers

The updated list includes both popular crypto firms in Lithuania and other financial institutions believed to have breached the AML laws. Notable crypto firms such as Spectro Finance and Bitgron were issued warnings while BXChange, Kaiser Exchange International, Entara, Stirdena, Hodleris, and Katren CD will be required to pay fines ranging from €800K – €1M.

AML Regulations in Lithuania

As an emerging regional financial hub, Lithuania has become increasingly attractive for money launderers and tax evaders alike. The FNTT’s framework stipulates the obligations of all financial institutions within the country including collecting data related to suspicious transactions with signs of money laundering or fraud before submitting it to the Financial Crimes Investigation Service (FCIS). All crypto service providers are also obligated to employ a full-time qualified AML/KYC compliance officer in order to remain compliant with local regulations.

Appealing Decisions

Companies that violate AML regulations are allowed their right to appeal in the Vilnius Regional Administrative Court within one month of receipt of the decision. If appeals are successful then penalties imposed or license withdrawals can be avoided or suspended accordingly depending on individual cases.

Conclusion

The latest developments indicate that Lithuania is becoming increasingly strict when it comes to monitoring and preventing money laundering activities within its jurisdiction through regulating virtual currency service providers accordingly with its AML laws . Companies who fail do comply with these guidelines risk being penalized or receiving official warnings which can be challenged by appealing in court if necessary