At the Board of the Bank of Lithuania
1. Results of the inspection, supervisory review and assessment of AB bankas SNORAS
The Board of the Bank of Lithuania considered a report on the inspection of AB bankas SNORAS and strictly assessed identified shortcomings of the bank performance and violations of legal acts.
The inspection focused on the bank management, internal control, and management of individual risks (credit, liquidity, market and operational). The Board was also presented with the bankas SNORAS supervisory review and assessment results.
The Board of the Bank of Lithuania gave AB bankas SNORAS certain instructions the observance of which would allow to limit the bank's operational risk to a greater extent, particularly the risk on the loans granted by the bank, financial instrument transactions, etc. Certain requirements for the bank capital the implementation of which is obligatory for prudential and stable operations of the bank were also set.
The AB bankas SNORAS Head of Administration was instructed not later than within ten days of the receipt of this resolution to come to the Bank of Lithuania to explain the way by which the bank envisaged to remove the established violations in its operation and implement the instructions given to it by the Bank of Lithuania, and after the expiration of the term for the implementation of these instructions, to explain how they had been implemented.
It was noted at the Board meeting that AB bankas SNORAS had not removed a part of the violations of legal acts and deficiencies in its operation identified during the previous inspection. In view of the above, the Board of the Bank of Lithuania instructed officials of the Credit Institutions Supervision Department to write a protocol of the administrative law violation regarding the violation made by the Head of Administration of AB bankas SNORAS of the administrative law established in Article 1724 of the Republic of Lithuania Code on Administrative Violations of Law (on non-compliance with a written instruction given by Resolution No. 194 of the Board of the Bank of Lithuania of 30 September 2009 to remove the administrative violations of law and the deficiencies in the Bank’s operation indicated in the inspection report).
3. Issue of a payment institution licence to UAB ”Perlo paslaugos”
The Board of the Bank of Lithuania decided to issue a payment institution licence to UAB ”Perlo paslaugos” that grants a right to provide a payment service (money remittances) listed in Paragraph 6 of Article 5 of the Republic of Lithuania Law on Payments.
This is the first payment institution licence issued in Lithuania. Activities of new economic entities providing payment services – payment institutions– are regulated in Lithuania by the Law on Payment Institutions which was adopted implementing the European Parliament and the Council Directive on Payment Services in the Internal Market. The licence given to the UAB ”Perlo paslaugos” allows to provide the licensed payment service not only in Lithuania but also in other European Union countries, while the turnover of the enterprise is envisaged to be more than LTL 1 million per month.
A payment institution is a payment services providing economic entity which is neither a credit nor electronic money institution and cannot accept deposits or other returnable funds from unprofessional market participants and issue electronic money. Beside payment services, payment institutions have a right to provide additional services closely related with these services and they are also allowed to perform other activities not connected with payment services.
The Bank of Lithuania issues licences to payment institutions, performs off-sight inspections of payment services provided by payment institutions and of additional services closely related thereto, carries out inspections and prepares legal acts regulating activities, risk management, internal control and other requirements of payment institutions.
5. Issue of a limited operation licence of a payment institution to UAB ”Antigravity payment systems”
The Board of the Bank of Lithuania decided to issue a limited operation licence of a payment institution to UAB ”Antigravity payment systems” that grants a right to render a payment service (money remittances) listed in Paragraph 6 of Article 5 of the Republic of Lithuania Law on Payments.
A limited operation licence of a payment institution allows the provision of services only in Lithuania, while the average of the amount of payment operations cannot exceed LTL 1 million per month. UAB ”Antigravity payment systems” envisages to be in compliance with these requirements.
6. Issue of a limited operation licence of a payment institution to Payment Workstation Systems, UAB
The Board of the Bank of Lithuania decided to issue a limited operation licence of a payment institution to Payment Workstation Systems, UAB (Vilnius) that grants a right to render a payment service (money remittances) listed in Paragraph 6 of Article 5 of the Republic of Lithuania Law on Payments.