Bank of Lithuania
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The Bank of Lithuania encourages electronic money and payment institutions (EMIs/PIs) to start preparations to implement the new management system requirements from early 2021 in order to ensure that their activities are stable, reliable and safe. Supervision of customer fund protection requirements is strengthened – institutions will have to inform the Bank of Lithuania about all newly concluded agreements related to meeting customer fund protection requirements and submit confirmations that they apply customer fund protection measures.

EMIs/PIs with reduced systemic risk have no obligation to submit quarterly capital and other supervisory reports. 

“EMIs/PIs are growing in number and their activities are expanding; therefore, based on our and other countries’ supervisory practices as well as the requirements of European Union legislation, we have made changes to the legal acts, which will increase the reliability of the activities of institutions and the security of customer funds. Institutions shall review internal processes and procedures, in particular those relating to internal control and risk management, internal audit, the protection of customer funds, and establish internal documentation governing these areas in accordance with the new requirements. The time to prepare for the changes from the beginning of next year will be sufficient if we start preparations today,” said Jekaterina Govina, Director of the Supervision Service of the Bank of Lithuania.

According to her, since one of the main conditions for licensing an institution is the ability to ensure sound and prudent management of the institution, the criteria for assessing the soundness of the management system and the risk management and internal control requirements set out in the approved requirements will allow for common understanding and consensus between the institution and the supervisory authority on the condition of the institution’s management system.   

Institutions that only provide initiation of payment and account information services and are engaged solely in the activities of collecting taxes for utilities or other regular services intended to satisfy household needs, collecting fines and other fees and charges to state institutions, paying social benefits, are reducing the administrative burden – they will not be obligated to provide the Bank of Lithuania with quarterly reports on financial, activities and capital calculations as of the third quarter of 2020, and will have to submit financial data only for the year.