Bank of Lithuania

What client fund safeguarding requirements apply to payment or e-money institutions?

13-09-2017
3

A payment or e-money institution must safeguard client funds using one of the following methods:

  1. Funds must be deposited in a separate account in a credit institution (the Republic of Lithuania or another Member State) or invested in secure, liquid low-risk assets; ‘secure, liquid low-risk assets’ means:
    1. cash and cash equivalents;
    2. bonds, issued by the Government/central bank/company (long-term rating should not be less than BBB). The bonds shall be traded in a stock exchange; information about the price of the bonds shall always be available;
    3. short-term deposits in credit institutions (term – no longer than 1 year);
    4. collective investment schemes, where investments are made in the abovementioned asset classes.
  2. By covering these funds by an insurance policy or a guarantee, a warranty statement from an insurance company or a credit institution (the Republic of Lithuania or another Member State).

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