CENTROlink

SEPA payment system

CENTROlink is a payment system operated by the Bank of Lithuania, providing the gateway to the Single Euro Payments Area (SEPA). Via its infrastructure, the Bank of Lithuania provides technical access to SEPA for all types of payment service providers (PSPs) – banks, specialized banks, credit unions, electronic money or payment institutions – licensed in the European Economic Area (EEA).

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About CENTROlink

CENTROlink is a retail payment system, developed and operated by the Bank of Lithuania, which allows customers of financial institutions to execute euro payments swiftly and inexpensively. PSPs participating in the CENTROlink can offer their clients all SEPA payment services: credit transfers (SCT), direct debit transfers (SDD Core) and instant payments (SCT Inst). More information on how CENTROlink operates, acceptance of PSPs, their rights and obligations, payment orders processing procedure as well as risk management is available in the Operating Rules of CENTROlink (530.5 KB download icon) and Regulations on the Conclusion of the ABIC Agreement (375.2 KB download icon).

CENTROlink payment system is linked to the main European SEPA instant payment systems RT1 and TARGET Instant Payment System (TIPS), enabling financial institutions operating within the system to provide a one-stop shop for SEPA credit transfers and direct debits as well as for instant payments.

Main objectives of the instant payment service:

• Operational security
• 24/7/365 availability
• Convenience – in combination with other SEPA schemes

Priorities for the development of the instant payments service:

• Direct link to the European Central Bank’s TIPS payment platform.
• Fast and convenient payments by initiating payments based on the payee’s mobile phone number, using a Proxy Lookup Service.
• Supplementing CENTROlink infrastructure services with a new request-to-pay processing functionality.
• Introduction of new functionalities using modern technologies.

System direct participants and ABIC holders

21 direct participants

117 addressable BIC holders

Note: Data as of 31-12-2024

Benefits of participating in the system

• CENTROlink is the payment system managed by the central bank, which offers a wide range of SEPA scheme services: credit transfers, direct debit transfers and instant payments.
• CENTROlink has links with the European payment systems STEP2, RT1 and TIPS, thus a PSP participating in CENTROlink gains access to the European payment systems without any additional expenses.
• Independence from intermediaries: PSPs open IBAN accounts in their own systems from which they initiate payments by themselves.
• All eligible PSPs – banks, specialized banks, credit unions, electronic money and payment institutions licenced in SEPA/EEA – can apply for CENTROlink connection.
• There is no credit risk involved as payments are made using accounts opened with the central bank.
• CENTROlink payment system does not impose additional limits on payment values, number of payments and number of issued IBAN accounts.
• Automated liquidity management and access to its management during TARGET2 business hours.
• An option to open customer deposit accounts and keep more funds than it is required to make payments.
• As the system is built on a dual infrastructure model, the continuity of the system is ensured even under critical conditions.
• PSPs have several connectivity options, including a secure internet connection.
• A flexible process for joining CENTROlink, taking into account the individual readiness to join for each PSP.
• Only trusted PSPs are eligible to join, following a thorough inspection based on the Know your Customer (KYC) and risk assessment process.
• A simple fee structure and competitive rates.
• A possibility to connect to the Bank of Lithuania’s Proxy Lookup Service. This service allows instant payments to be initiated based on the mobile phone number of a payee.

More information is available here.

How to get access

The main steps for connecting to the Bank of Lithuania payment system CENTROlink:

Meeting	Questionnaire	Risk assessment	NDA	Certificates	Testing	Agreement	Start of Payments
Introduction meeting between the PSP and the CENTROlink representatives, presentation of the PSP business model and company needs, discussion about potential business relationship	Completion and submission of the KYC questionnaire and supporting documents to the Bank of Lithuania	Assessment of the PSP KYC information based on the KYC and risk assessment process and the final decision if PSP is offered to sign a non-disclosure agreement	Signing of a non-disclosure agreement (NDA) between the PSP and the Bank of Lithuania. Granting access to CENTROlink technical documentation and submission of a request to connect to the system	Signing of the certification agreement and issuance of CENTROlink system access certificates to PSP representatives	PSP registration in CENTROlink and external payment system testing environments, performance of testing procedures, submission of a testing report to the Bank of Lithuania	Additional internal KYC update. Signing of the CENTROlink participation agreement between the PSP and the Bank of Lithuania	PSP registration in payment systems for the agreed Go-live date

Proxy Lookup Service

The Bank of Lithuania’s Proxy Lookup Service (PLS) allows participating PSPs to initiate payments (SCT and SCT Inst) using payee’s mobile phone number. To use the alias payment service, the user must give their consent in the bank’s mobile app to link their phone number to the selected IBAN account. To transfer money, the user simply needs to select the payee from their contact list in the mobile app or enter the payee’s phone number. A transfer is possible if the payee has also linked their phone number to an IBAN account.

• Regulations of the Proxy Lookup Service System (366.9 KB download icon)

Service fees

For detailed information of all CENTROlink service fees and billing procedures please refer to the Operating Rules of CENTROlink (530.5 KB download icon) and Regulations on the Conclusion of the ABIC Agreement (375.2 KB download icon).

The fee for the system services shall be calculated separately for each BIC of the system participant or ABIC holder.

Contact us

• Request a meeting
• Conference call
• Written consultation

Direct participation in the CENTROlink payment system – migration from the addressable BIC holder to the direct participation model

The Instant Payments Regulation, which came into effect on 4 August 2024, introduced amendments to the Settlement Finality Directive (98/26/EC) (hereinafter, SFD) expanding the list of entities eligible for direct participation in payment systems and allowing electronic money institutions (EMIs) and payment institutions (PIs) to participate under specific conditions. The SFD, inter alia, provides for a new Article 35a to the Second Payment Services Directive (Directive (EU) 2015/2366) (hereinafter, PSD2), which defines the conditions under which EMIs and PIs can participate directly in payment systems. Please note that the specific methods for the assessment of the compliance of EMIs and PIs with Article 35a of the PSD2 will be determined by national supervisory authorities; therefore, current and prospective CENTROlink participants should consult the national supervisory authority that issued their operating licence for further details. To demonstrate compliance with Article 35a of the PSD2, in line with the proposed amendments to the Republic of Lithuania Law on Payments, EMIs and PIs licensed in Lithuania will be required to conduct a self-assessment and report on their compliance with the relevant requirements, and, if requested by the payment system they are connecting to, they will have to provide an audit report (conclusion) verifying compliance with these requirements (visit here for further details on the amendments to the Republic of Lithuania Law on Payments).

The above amendments are aimed at facilitating the access of EMIs and PIs to payment systems operated by central banks, thereby expanding the possibilities for instant euro settlements for consumers and businesses in EU/EEA members states.

It should be noted that EMIs and PIs currently participate in the CENTROlink payment system as addressable BIC holders, connecting to payment systems through a direct participant in the CENTROlink payment system, namely Lietuvos bankas. In light of the above changes, from 9 April 2025, the migration of current CENTROlink participants will begin; during this process, the addressable BIC holder agreements will be terminated, and agreements for direct participants in the CENTROlink payment system will be signed.

Please note that only EMIs and PIs licensed in EU/EEA countries will be eligible for direct participation; therefore, participants from the United Kingdom will remain addressable BIC holders until 31 December 2025, after which date their addressable BIC holder agreements will be terminated. It should also be noted that: (1) payment systems operated by central banks will no longer offer customer funds safeguarding accounts; and (2) to ensure liquidity, EMIs and PIs will be permitted to hold funds in central bank accounts only up to the limit set by a pre-defined formula. Customer funds must be safeguarded in accordance with legal requirements.

The transition to the direct participation model will involve legal changes to be implemented by member countries and measures to be undertaken by payment system participants.

Legal changes: transposition of the SFD and PSD2.

Actions of system participants: selecting a method for safeguarding customer funds and ensuring its implementation; managing customer fund balances within the payment system; and ensuring compliance with Article 35a of the PSD2.

Steps for transitioning to the direct participation model

1. Selecting and implementing a method for safeguarding customer funds – by 9 April 2025

As central banks operating payment systems will no longer offer customer funds safeguarding account services as of 9 April 2025, EMIs and PIs without an alternative method to safeguard customer funds must implement one by this date.

In light of these developments, the CENTROlink payment system has introduced changes regarding customer funds safeguarding accounts, which participants have been informed of; as of 28 February 2025, the changes are being tested in the CENTROlink payment system’s testing environment.

2. Management of customer fund balances within the payment system – from 9 April 2025

As of 9 April 2025, EMIs and PIs participating in the CENTROlink payment system will no longer be able to hold unlimited fund balances in CENTROlink’s FC and FC Inst accounts. Consequently, these balances will have to be managed by the participants in accordance with the formula established by the European Central Bank. It should be noted that the formula will be applied separately to the CENTROlink and TARGET systems. Specifically, the balance of funds in the CENTROlink system will be calculated based on the participant’s activities within CENTROlink, while the balance of funds in the TARGET system will be calculated based on the participant’s activities within the TARGET system.

In light of these developments, the CENTROlink payment system has introduced changes to liquidity management, which participants have been informed of. As of 28 February 2025, the changes are being tested in the CENTROlink payment system’s testing environment.

3. Assessment of compliance with Article 35a of the PSD2 (analysis of requirements for EMIs and PIs, preparation of necessary documents) – ongoing

Migration is based on the transposition of the SFD and PSD2 in both the country of the payment system’s operator (Lithuania, in the case of CENTROlink) and the country where the EMI and PI are licensed. Direct participation in the TARGET system will be enabled once the country that issued EMI and PI licences transposes the SFD provisions (Lithuania has already completed the transposition).

The requirements and necessary documents for payment system participants seeking direct participation will vary depending on the country that issued their licence.

EMIs and PIs licensed in Lithuania, seeking direct participation in the payment system, will be required to conduct a self-assessment and report on their compliance with the relevant requirements. If requested by the payment system operator, they will have to provide an audit report (conclusion) verifying compliance with these requirements. On 6 March 2025, the Board of the Bank of Lithuania adopted Resolution No. 03-34 “On the Approval of the Description of Requirements Applied to Payment Institutions and Electronic Money Institutions Participating in Payment Systems”, approving the Description of Requirements Applied to Payment Institutions and Electronic Money Institutions Participating in Payment Systems. The self-assessment will have to be conducted using the form provided in the annex to the description.

EMIs and PIs licensed outside Lithuania must monitor the transposition of the SFD and PSD2 in the country that issued their licence to determine when it is completed. The CENTROlink team plans to provide participants with periodic updates on the transposition of directives in different countries.

The list of countries that have already transposed the provisions of the SFD and PSD2 is available here.

4. Submission of the required documents to the operator of the CENTROlink payment system – from 9 April 2025

The migration process will start once the transposition of the SFD and PSD2 is completed in the country where the participant is licensed and the participant expresses its intention to become a direct participant in the system, providing all necessary documents to the payment system. Documents will be accepted in either Lithuanian or English.

The increased administrative burden resulting from efforts to effectively manage the migration process led to the decision to divide current CENTROlink payment system participants licensed in Lithuania into four migration windows. These are specific periods during which holders of addressable BICs must submit the necessary documents to initiate the migration process.

A CENTROlink participant may submit a reasoned request for a transfer to an earlier or later migration window based on their readiness and ability to submit the necessary documents within the designated period.

The migration process for EMIs and PIs licensed outside Lithuania will begin no earlier than 9 April 2025, and is expected to be completed by 31 December 2025. The CENTROlink team expects EMIs and PIs licensed outside Lithuania to submit documents for their migration within 3 months of the transposition of the SFD and PSD2 in the country where the participant is licensed.

5. Assessment of the required documents submitted to the operator of the CENTROlink payment system in accordance with the established migration plan – starting no earlier than 9 April 2025

The assessment of the documents submitted is expected to begin within 20 working days. During the assessment of the documents, we expect participants to act in good faith, cooperate fully, and provide prompt responses to any questions that may arise.

6. Conclusion of direct participant agreements in accordance with the established migration plan – starting no earlier than 9 April 2025

Following the successful submission and assessment of the documents, a new direct participation agreement will be signed. The draft of the new version of the CENTROlink rules was submitted for information to participants on 6 March 2025. The new version of the rules will enter into force on 9 April 2025.

7. Completion of the migration process – expected by 31 December 2025

All participants of the CENTROlink payment system are expected to sign direct participation agreements by 31 December 2025. The participation of addressable BIC holders from the United Kingdom in the CENTROlink payment system is also expected to continue until that date.

During the migration period, the CENTROlink payment system will continue to accept new participants and allow the connection of additional payment schemes. All potential participants will be connected as direct participants, i.e. there will be no new addressable BIC holders. Throughout the migration period, both the direct participation and addressable BIC models will be available simultaneously.

FAQs 

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