Bank of Lithuania
2020-06-02
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Having conducted a targeted on site inspection of the electronic money institution UAB ConnectPay, the Supervision Service of the Bank of Lithuania has identified a number of breaches of  the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing. Therefore, the Bank of Lithuania imposed a fine on the institution and ordered it to remedy the identified breaches. 

The targeted inspection revealed certain cases where UAB ConnectPay failed to apply proper customer identification measures to its customers, their representatives or beneficial owners, to ensure an appropriate procedure for the identification of politically exposed persons and to conduct customer money laundering and terrorist financing (ML/TF) risk assessment. It was also identified that its KYC information was incomplete and did not fully disclose the purpose and nature of their business relationships. 

The institution also failed to conduct a business-wide risk assessment. Moreover, certain deficiencies were identified in its internal control procedures for the implementation of international financial sanctions. 

UAB ConnectPay therefore received a €110,000 fine. 

The institution has informed the Supervision Service of the Bank of Lithuania that it already took measures to strengthen its AML compliance by increasing the number of specialists working in this particular field and investing in additional technological solutions. 

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Information on enforcement measures applied by the Bank of Lithuania, complaints regarding the applied enforcement measures, and settlement results is available here.