Lithuania

New Documents

The Bank of Lithuania urged financial market participants to identify and assess anti-money laundering and counterterrorist financing risks associated with nonprofit organizations on an individual basis in order to avoid their automatic attribution to higher-risk customers.

The Seimas passed a resolution in response to the Belarusian government’s actions concerning a civil aircraft.

News

Enforcement Actions

The Bank of Lithuania revoked the license of the Vilnius, Lithuania-based company for serious violations of anti-money laundering and counterterrorist financing requirements.

The Bank of Lithuania fined the Vilnius, Lithuania-based electronic money institution for violations fo the Law on the Prevention of Money Laundering and Terrorist Financing.


Important Facts

  • The U.S. State Department identifies Lithuania as a monitored jurisdiction. The jurisdiction is not a regional financial center and it has adequate legal safeguards against money laundering. However, its geographic location bordering Belarus and Russia makes it a target for smuggled goods and tax evasion. The sale of narcotics does not generate a significant portion of money laundering activity. The biggest source of illicit income is value added tax (VAT) fraud, which is typically conducted through the underreporting of goods' value. Most financial crimes, including VAT embezzlement, smuggling, illegal production and sale of alcohol, capital flight and profit concealment, are tied to tax evasion. Public corruption in Lithuania does not contribute to money laundering or terrorist financing.
  • KYC Covered Entities: Banks, credit unions, and financial leasing firms; insurance companies and brokers; lawyers, notaries, tax advisors, auditors, and accountants; investment and management companies; real estate brokers and agents; gaming enterprises; postal services; dealers in art, antiquities, precious metals and stones, and high-value goods
  • STR Covered Entities: Banks, credit unions, and financial leasing firms; insurance companies and brokers; lawyers, notaries, tax advisors, auditors, and accountants; investment and management companies; real estate brokers and agents; gaming enterprises; postal services; dealers in art, antiquities, precious metals and stones, and high-value goods
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: No
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 57 (Jan. 1 – Nov. 1, 2015); Convictions: 12 (Jan. 1 – Nov. 1, 2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 9 High : 0
Largely Compliant : 23 Substantial : 1
Partially Compliant : 8 Moderate : 10
Non-Compliant : 0 Low : 0

BASEL i

Rank : 131/141
Score : 3.51/10

TRANSPARENCY INTERNATIONAL i

Rank : 35/180
Score : 60/100

Tax Justice Network i

Rank : 105/133
Score : 50/100