Bank of Lithuania does not grant licence to HUSH LT due to reputational concerns
The Supervision Service of the Bank of Lithuania rejected the application of UAB HUSH LT to issue an electronic money institution licence for restricted activity since the head of the company failed to meet legislative requirements; moreover, the company provided incorrect information about him.
‘We are glad that our country attracts the interest of innovative and up-and-coming financial undertakings wanting to invest in it. At the same time, however, we keep a close watch to avoid disreputable companies slipping through without being submitted to thorough scrutiny and this particular case can attest to that,’ said Vytautas Valvonis, Director of the Supervision Service at the Bank of Lithuania.
UAB HUSH LT applied to the Bank of Lithuania for an electronic money institution licence for restricted activity. It intended to issue electronic money and provide payment services via mobile devices in our country.
In the course of collecting and assessing information on the company and its head, specialists of the Supervision Service of the Bank of Lithuania uncovered that he had been convicted in France and fined for a continuous offence – fraud related to public sector and social security benefits and family allowances. The above-named conviction has not expired or been reversed. Additionally, it was found that the activities of the payment institution headed by this person were suspended by the French financial sector supervisory authority due to significant violations.
In submitting information, UAB HUSH LT, represented by the law firm Ecovis Proventus Law, failed to reveal previous conviction of the head of the company and the fact that the company led by this person had its licence revoked or rights to engage in certain activities suspended. Any person who has committed these kinds of violations does not meet the requirements set to the heads of electronic money institutions applying for licence for restricted activity. Thus, the Bank of Lithuania rejected the application of UAB HUSH LT to issue a licence for restricted activity.