Bank of Lithuania fined SatchelPay for improper safeguarding of client funds
The Supervision Service of the Bank of Lithuania imposed a fine on the electronic money institution SatchelPay, UAB for improper safeguarding of client funds.
According to the Republic of Lithuania Law on Electronic Money and Electronic Money Institutions, an institution, having decided to protect client funds by way of segregation, must hold the funds with credit institutions (banks, credit unions) registered in the Republic of Lithuania or another EU Member State or with the central bank of the Republic of Lithuania or another EU Member State, or invest them in secure and liquid low-risk assets.
However, SatchelPay, UAB held part of its client funds in accounts opened with electronic money and payment institutions and in an account opened with a bank of an EU Member State that was not intended for safeguarding client funds, thus breaching the requirements laid down in the above-mentioned law. The institution therefore received a €23,000 fine. SatchelPay, UAB now complies with the said legal requirement and holds its client funds in a separate account opened with a central bank.
This is the second enforcement measure the Bank of Lithuania took against Satchel Pay, UAB. At the beginning of August 2019, the Bank of Lithuania temporarily suspended the activities of Satchel Pay, UAB, prohibiting it from issuing electronic money and providing part of the payment services under its licence. On 18 November 2019, after SatchelPay, UAB eliminated the detected shortcomings and appointed a new manager, the Bank of Lithuania revoked its decision to suspend its activities.
Information on enforcement measures applied by the Bank of Lithuania, complaints regarding the applied enforcement measures, and settlement results is available here.